Credit Cards

The Hall of Free Things Dispatch from Neo-Mumbai, Financial Year 2047. The week of September 13–19, 2026, when the free payment rail acquired a price tag, the price tag acquired a courtroom, and the nation’s museums competed for a new acquisition: the concept of free. 📰 Future Headlines From This Week “MDR on UPI Notified: 0.4% Fee Applicable on Person-to-Merchant Transactions Above ₹2,000, Effective October 15” — Times of India, September 16, 2026 “PIL in SC Challenges 0.4% MDR on UPI Transactions Above ₹2,000” — Business Standard, September 16, 2026 “Government Denies US Pressure Behind UPI MDR, Says Charge Will Help Indian UPI Apps” — The Hindu / ET, September 18, 2026 “Paytm, MobiKwik Shares Jump Up to 5–7% After UPI MDR Announcement; Brokerages See Revenue Boost” — Moneycontrol, September 16, 2026 “Credit for the Next 50 Crore: How PhonePe’s New Co-Branded Cards Target India’s Underserved” — Economic Times, September 16, 2026 “Financiers Cannot Repossess Vehicles by Force: Supreme Court Awards ₹10 Lakh Compensation to Truck Owner” — LiveLaw, September 2026 “RBI Proposes 60-Day Cap on Temporary Debit Holds for Suspected Money Mule Accounts” — ET BFSI, September 2026 A Curator’s Testimonial I am Curator-11 of the Museum of Financial Optimism, Fee Provenance Division, and this month we opened our most visited wing: the Hall of Free Things. School groups arrive by the coachload and ask the same first question, and I give the same first answer: yes, children, there was once a thing called free, and no, it did not die of natural causes. ...

Credit Cards — Understanding Plastic Money in India What is a Credit Card? A credit card is a revolving credit line that allows you to borrow up to a limit for purchases. India has 100+ million credit cards in circulation (2024), led by HDFC, SBI, and ICICI. How Credit Cards Work Billing Cycle Transaction Day: You make a purchase Statement Date: Monthly bill generated (usually same date each month) Payment Due Date: 20-25 days after statement (total due or minimum due) Interest: Charged on revolving balance Key Amounts Total Due: Full amount to avoid interest Minimum Due: 5% of balance (interest charged on rest) Available Credit: Limit minus outstanding Outstanding: All unpaid transactions + interest Interest-Free Period 1 2 3 4 Transaction: ₹10,000 on Jan 1 Statement: Jan 25 Due Date: Feb 15 Interest-Free Period: Jan 1 - Feb 15 (45 days) Types of Credit Cards By Category Lifetime Free (LTF): No annual fee (conditions apply) Premium: Annual fee ₹1,000-50,000+ (lounge access, rewards) Fuel: Cashback on fuel transactions Shopping: Discounts on e-commerce Travel: Air miles, hotel benefits By Issuer Banks: HDFC, SBI, ICICI, Axis, Kotak Co-Branded: Amazon-ICICI, Flipkart-SBI NBFCs: Bajaj Finserv, Capital Float Charges & Fees Common Fees (2024) Annual Fee: ₹0-50,000 (waived on spends) Interest Rate: 1.5-3.5% per month (18-42% APR) Late Payment: ₹100-1,200 based on outstanding Cash Advance: 2-3% of amount Foreign Transaction: 2-3% Reward Rates Premium Cards: 2-5% on specific categories Standard Cards: 0.5-1.5% on most spends Fuel Surcharge: 1-2% waiver RBI Regulations Key Rules (2024) Card Not Present (CNP): Additional authentication mandatory Tokenization: Card data can’t be stored by merchants Credit Limit: Cannot exceed 3x monthly income (guideline) Interest Rate Disclosure: Must show monthly and annual rates EMI Options: Must offer no-cost EMI conversion Security Requirements OTP for Every Transaction: No exceptions Hotlisting: Instant blocking facility Velocity Limits: Unusual activity alerts Managing Your Card Best Practices Pay Total Due: Avoid 18%+ interest Track Spends: Monitor via app Set Payment Reminders: Never miss due date Review Statements: Check for fraud Use Rewards: Maximize benefits without overspending Building Credit Score Payment History: 35% of CIBIL score Credit Utilization: Keep below 30% Credit Age: Older cards help Mix: Installments + revolving credit Common Problems Fraud Protection Liability: Zero for unauthorized (if reported) SMS Alerts: Enable for all transactions Virtual Card: Use for online shopping Disputes Billing Errors: Raise dispute within 60 days Merchant Refund: Can take 7-21 days Chargeback: For non-delivery, defective goods Consumer Rights Your Rights Transparent Pricing: All fees disclosed upfront Grievance Resolution: 30-day response timeline Interest Reversal: On failed transactions Card Recovery: Bank must reissue if lost What Banks Can’t Do Charge undisclosed fees Increase interest without notice Harass for recovery Block without reason Reporting Issues Bank Customer Service: First level RBI Ombudsman: https://cms.rbi.org.in Consumer Court: For deficiency in service CIBIL: Dispute on credit report Prime References RBI Credit Card Guidelines RBI Grievance Portal CIBIL - Free score check This 101 guide is part of CashlessConsumer’s fintech education initiative. Last updated: March 2026.