India Prudential Norms On Income Recognition, Asset Classification And Provisioning Pertaining To Advances – Credit Card Accounts.

The circular dated July 16, 2015 prescribes that the 'past due' status of a credit card account for the purpose of asset classification would be reckoned from the payment due date mentioned in the monthly credit card statement. A credit card account shall be treated as a non-performing asset if the minimum amount due remains unpaid after the expiry of 90 (ninety) days from the payment due date. The banks shall, however, report a credit card account as 'past due' to credit information companies or levy penal charges when the account remains 'past due' for a period of 3 days beyond the due date.

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