The Reserve Bank of India requires credit card issuers to warn customers that paying only the Minimum Amount Due every month can cause repayment to stretch over years while interest continues on the outstanding balance.
Another important point is that if part of the previous month’s bill remains unpaid, the cardholder may lose the interest-free credit period on subsequent transactions, depending on the issuer’s terms.
For example, if your bill is ?50,000 and you pay only a ?2,500 minimum due, the remaining ?47,500 does not disappear. Finance charges can continue to apply.
Who is affected: Credit card users who regularly carry forward balances.
Action: Whenever financially possible, pay the Total Amount Due by the due date rather than treating the minimum payment as a regular repayment option.
