Provisioning and reporting of Credit Card NPAs to Credit Information Companies

The ‘past due’ concept of a credit card account is now revised and determined from the payment due date mentioned in the monthly statement. The credit card accounts are to be treated as NPAs, if the amount not paid fully within 90 days from the due date mentioned in the statement by the card holders. Further, the  levy of penal  late payment charges if any is applicable only when a credit card account remains ‘past due’ for more than three days.  However, the late payment charges may be computed from the payment due date mentioned in the statement. The number of ‘days past due’ is also calculated on the above basis of due date mentioned in the credit card statement for the purpose of provisioning. Banks shall report the past dues of a credit card to credit information companies (CICs) like CIBIL, only when a credit card account remains ‘past due’ for more than three days. In terms of RBI circular of July 16, 2015, the revised ‘past due status’ is reckoned with immediate effect for the purpose of asset classification.