Reserve bank of India has given three days as grace period for credit card holders to make the due payments from the due date shown in credit card statement.
This brings a huge relief for credit card holders who are struggling to make the payment within due date. Sometimes card holders are not able to make the payments on time due to festival holidays and other means. Sometimes they get in to minimum balance debt trap. Now they need to use this grace period to the maximum extent. Even they should clear their dues before due date.
Also RBI told the banks to mark the credit card accounts as “past due “if the car holder does not make any payment 3 days after the due date shown in card statement and report the same to credit rating agencies like CIBIL. Credit card holders never like the late payment being reported to CIBIL as it will pull their credit score down.
Card holders should consider these three days as bonus to boost their credit rating. They need to make sure that they are not charged by banks and improve their chances for future credits.
Consider the following case:
February 20 is the due date for a credit card holder, as per the new system he can make the payment till 23 rd February, there is no fine. If he is forced to make the payment on 24, 25, 26 dates, owing to some other circumstances, late fee is levied.