Mumbai, Dec 21 (KNN) In order to tighten credit card norms, the Reserve Bank of India (RBI) has said that the credit card dues not fully paid for 90 days within two bank statements should be treated as non-performing assets.

“The gap between two statements should not be more than a month,” the RBI said.

"It is advised that a credit card account will be treated as non-performing asset if the minimum amount due, as mentioned in the statement, is not paid fully within 90 days from the next statement date,” said the apex bank.

“While some banks reckon the due date specified in the statement for payment of minimum amount due to determine the over-due status, some banks reckon the subsequent billing date to determine the over-due status of the minimum amount due,” the RBI notification added.

The order has been issued to bring in “consistency and induce transparency” within banks, the central bank said.

For the credit card users, the monthly statement is sent to the users by their banks with a definite due date by which the repayment needs to be done.

Banks further give an option to pay the minimum amount due if the full payment is not being made on the due date.

The remaining balance is passed on to the subsequent month’s billing cycle.

The Reserve Bank said it has come to its notice that there are divergent practices being followed by banks with regard to asset classification status of credit card accounts if the minimum amount is not paid on the due date.

RBI has asked the lenders to follow this uniform method of determining over-due status for credit card accounts while reporting to credit information companies and for the purpose of levying of penal charges, like late payment charges, if any. (KNN/SD)