Cardholders' data cannot be shared without their consent

Amending its master directions for credit and debit cards, the RBI has mandated that cardholders be provided an option to modify the billing cycle of credit card.

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FROM now on, card issuers cannot share card data including transaction data of the cardholders with the outsourcing partners without explicit consent from the cardholder. Earlier there were guidelines on the same, but the Reserve Bank of India has now amended the Master Direction on Credit Card and Debit Cards, advising card issuers to ensure that the storage and the ownership of card data remains with them.

It has also asked the card issuers to put in place an effective mechanism to monitor end use of funds. The move will help card holders as they can ensure that their card issuers do not share data without their consent.

The amended provisions have come into effect from March 07, 2024. The new rules stipulate that in case where the customers give explicit consent for sharing the information provided by them with other agencies, card issuers shall clearly state and explain to the customer the full meaning or implications of the disclosure clause.

The RBI has also released FAQs in which it says that card issuers are prohibited from issuing unsolicited credit cards and are required to seek prior and explicit consent from the customer before issuing a card.