On December 22, 2025, the central bank of India (RBI) announced a significant regulation that all card issuers must give their customers the option to choose their billing cycles. This move aims to give consumers more power, as the central bank has made it compulsory for credit card holders to change their billing dates at least once a year to coincide with their monthly salary credits. The main objective behind this regulatory change is to get rid of the issue of unintentional interest charges that occur due to conflicting payment dates. The RBI has also put more pressure on the banks regarding interest rate transparency and has made it mandatory for the banks to print the “Effective Annualized Percentage Rate” (APR) in big letters on every monthly statement so that the borrowers do not remain unaware of the true cost of revolving credit.
Surge in RuPay Credit Card Adoption via UPI
The digital payment scene in India is witnessing a huge shift as RuPay Credit Cards on UPI hit the highest transaction volumes ever this month. The latest report from the National Payments Corporation of India (NPCI) reveals that almost 40% of credit cards issued in the last quarter have been RuPay-based, with the main reason being the convenience of “scan and pay” at the merchant outlets. To retain their customer base, private lenders are coming up with aggressive reward point programs that are exclusively for UPI-linked transactions. This behavior is especially notable in the smaller towns and cities (Tier-2 and Tier-3), where credit use is rapidly growing as the main reason for digital payments of small value. The international card networks, which have been in control of the market for a long time, are now being challenged by this shift.
Enhanced Fraud Protection for Online Credit Transactions
The dynamic security code has been mandated by the government financial authorities for high-value online transactions during the festive season, when spending is at its peak. This credit card security feature removes the fixed three-digit code from the back of the card and substitutes it with a randomly produced code for only one-time use through the bank’s mobile application. Cyber fraud and unauthorized card-not-present transactions are the main targets of this move, which has already been approved by the Ministry of Electronics and Information Technology. Moreover, banks have been ordered to give their customers an instant “kill switch” through their mobile applications, thus enabling them to put a freeze on certain types of transactions. These transactions could be outward transfers in the case of international payments, contactless payments, etc. This way, protection of consumers in the digital era is enhanced along with the development of the digital economy.