Module: | KYC, NPAs, Advances & Investment Valuations
Q237: A credit card account can be reported as 'past due' to Credit Information Companies (CICs) or levied with penal charges only when the account remains 'past due' for more than how many days?
✅ Correct Answer: B
The correct answer is B. According to the RBI Master Direction, card-issuers are strictly permitted to report a credit card account as 'past due' to Credit Information Companies (CICs) or levy penal charges, such as late payment fees, ONLY when the credit card account remains 'past due' for more than three days.
This mandatory 3-day grace window protects customers from immediate adverse reporting or financial penalties due to minor administrative delays in payment processing or bank holidays immediately following the due date.
Options A, C, and D represent incorrect timeframes according to current regulatory standards.
This mandatory 3-day grace window protects customers from immediate adverse reporting or financial penalties due to minor administrative delays in payment processing or bank holidays immediately following the due date.
Options A, C, and D represent incorrect timeframes according to current regulatory standards.