MITC for Credit Card

Unless your work requires you to understand banking regulations, there’s a good chance that you are unfamiliar with the RBI's recent Most Important Terms and Conditions (MITC) regulation and its impact on our everyday lives. We, however, think that it is a consequential regulation that must be understood by everyone. This article explores the contents of MITC and explains its significance. Keep reading to learn more!

What is MITC, and why is it important?
 

The spelled-out form of MITC is quite self-explanatory – Most Important Terms and Conditions – and helps us understand its meaning better: a document that enlists the most important terms and conditions of a product or service. The MITC for Credit Cards announced by a bank or financial institution details the associated charges of the Credit Card, its interest rates, payment due date, the length of its interest-free period, and various other important details.    

What has the recent RBI regulation changed?

With effect from July 2022, the RBI has recommended a few changes to the way banks must draft and inform their customers about MITC regulations. Here are some of the important changes proposed, in brief.

· The MITC must be sent separately to customers at the acceptance stage, i.e., while sending them the welcome kit.

· All fees and charges must be mentioned in advertising and marketing campaigns.

· The MITC document should have illustrated examples.

· An MITC document must also explain the information-sharing procedure with credit bureaus. 

What are IDFC FIRST Bank’s Most Important Terms and Conditions?
 

IDFC FIRST Bank’s Most Important Terms and Conditions are divided into a sequence of 16 points that can be read in detail here. Read the points listed below to get a brief idea about IDFC FIRST Bank’s MITC and the points mentioned in the document.

· Fee and charges
 

IDFC FIRST Bank lists the details of the various fees and charges to be paid by the customer for various services such as the Annual and Renewal Membership Fee, the Cash Advance Fee, and Late Payment Charges. Other charges like the over-limit fee, the charges in foreign currency, and the railway ticket booking surcharge are also discussed and explained in detail. 

· Credit Card interest-free period
 

The MITC document defines the Credit Card interest-free or grace period as not exceeding 48 days and dependent on the date of the transaction and the statement date.  

· Credit Card due date
 

The Payment Due Date section defines the due date of an IDFC FIRST Bank Credit Card as varying between 15 and 20 days from the statement date, depending on the outstanding dues repayment history.

· Payments and methods of payment
 

The MITC divides the payments received against the card into six categories – EMI (Equated Monthly Instalment), Interest Charges, Cash Advances, Purchases, and Other Debits. In addition, the MITC document identifies various methods of payment including NEFT (National Electronic Funds Transfer), Cheque payments, UPI (Unified Payments Interface), and payment gateways.

· Billing disputes and grievance redressal

IDFC FIRST Bank’s Most Important Terms and Conditions document lists two other important topics – First, the investigation procedure followed by IDFC FIRST Bank in the event of a dispute or discrepancy. Second, the resolution of grievances that could not be solved by the customer care channels and ways to escalate one’s grievance.

IDFC FIRST Bank’s MITC document contains many more details such as the termination/revocation/transfer of credit card membership, the loss/theft/misuse of your credit card, the rules and regulations of defaulting, etc. it is advisable to read through this document before availing an IDFC FIRST Bank Credit Card in order to be better aware of its terms and conditions. 

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.