Credit Card Interest Calculated From Purchase Date Not Due Date
Your credit card statement shows interest charged from the date of purchase, even though you paid the full or partial amount before the due date. The effective interest rate is significantly higher than the disclosed rate.
⚖️Your Rights Under RBI Regulations
Banks must clearly disclose the method of interest calculation — including that interest accrues from transaction date.
Interest cannot be charged on amounts you have paid on time.
If you pay the full outstanding amount before the due date, you should not incur any interest.
The Annual Percentage Rate must be prominently disclosed — showing monthly rate without annual equivalent is a disclosure violation.
Every statement must show how long it will take to clear the balance using minimum payments.
💰 What You Can Recover
Refund of interest overcharged due to wrong calculation method or inadequate disclosure.
⏱ Response Deadline
30 days for written complaint to credit card grievance cell.
📋Step-by-Step — What to Do
Request a detailed interest calculation statement from the bank showing how interest was computed.
Calculate the correct interest based on the disclosed rate and your payment dates.
Write to the credit card grievance cell with the discrepancy calculation.
Escalate to Nodal Officer then RBI Ombudsman — credit card disputes are specifically covered.
🏛 Where to Escalate If Bank Doesn't Respond
RBI Integrated Ombudsman — cms.rbi.org.in (select "Credit Card" category)
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