Ref: E&R/Press/2005/RBIMEET.2/JSD

RBI Working Group on Credit Cards Formed

The Reserve Bank of India has recently constituted a Working Group to promote and protect consumer interest in the matter of credit cards by banks and credit card companies.

In a recent meeting with Prof. Manubhai Shah, Chairman Emeritus, Consumer Education and Research Centre, (CERC), Ahmedabad had with the Reserve Bank Governor Dr. Y.V. Reddy, the latter invited Prof. Shah to be a member of the Working Group.

The Working Group for Regulatory Mechanism for Cards would suggest the type of regulatory measures to be introduced for plastic cards (credit, debit and smart cards) keeping in mind the need to encourage their growth in a safe, secure and efficient manner.

The group would recommend measures to be introduced to ensure that the rules, regulations, standards and practices of the card issuers are re-aligned with the best customer practices. The group would further draw a roadmap for setting up of a grievances redressal mechanism for the card users, as suggested by the RBI terms set for the Working Group.

It was an honour bestowed upon Prof. Shah by the RBI Governor Dr. Reddy himself to suggest that he should be an invited member of the Working Group which otherwise consists of Bankers and Companies issuing credit cards.

Prof. Shah has already submitted to RBI ‘a copy of his paper presented at Kuala Lumpur on Consumer Credit and Indebtedness : Indian Scene’: and also a copy of the ‘Text of the New Zealand Law on Consumer Credit’. The Working Group holds its first meeting on 15 January 2005 in Mumbai.

CERC had already undertaken a survey regarding consumer problems and concerns on credit cards in India and Prof. Shah had presented a paper on the subject at Asia Pacific Conference of Consumer Associations at Kuala Lumpur during March, 2004.

Earlier, Prof. Shah appearing before the Committee on Procedures and Performance Audit on Public Services of Banks, headed by Mr. S.S. Tarapore made a presentation stressing on the urgent need for enactment of a law to promote and protect the interest of credit card holders with regard to the international trends and some of the tragic occurrences of consumers incurring huge debts with the facility of credit cards and committing suicides for not being able to repay the debt.

Date : 15/01/2005
Place : Ahmedabad

Pritee Shah
Editor
INSIGHT - The Consumer Magazine

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CONSUMER EDUCATION AND RESEARCH CENTRE
“Suraksha Sankool”, Thaltej, Sarkhej-Gandhinagar Highway, Ahmedabad - 380 054 (INDIA)
Phone: 079-27489945-46 Fax: 079-27489947
E-mail: cerc@wilnetonline.net
Web Site: http://www.cercindia.org
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