Indian credit card holders may no longer be able to pay their debts in full

 Indian credit card holders may no longer be able to pay their debts in full

To stop clients from paying their credit card bills in full early, banks have added safeguards to their apps.

Indian banks no longer let credit card customers to make payments greater than the balance due. The Times of India (TOI) stated on Friday that they are refunding the excess sum in cases where there has been an overpayment.

The banks' key motivation is their concern over fraud and money laundering. According to a bank official cited in the TOI story, there have been instances where overseas transactions employing hacking have been made with the extra money left over on a customer's credit cards.

Banks have added safeguards to their applications to stop users from paying too much. Money transfers through other banks are permitted, although in certain circumstances, the card-issuing institutions must return any excess amounts within a week.

According to the research, HDFC Bank, SBI Card, and Axis Bank do not permit their customers to make payments on their applications that are greater than the balance due. However, some ICICI Bank clients were cited as suggesting that they are permitted to overpay.

A representative from HDFC Bank was also quoted as adding that because credit cards are a lending instrument and not a savings account, clients cannot keep their extra money on them.

Additionally, a recent directive requires banks to reimburse overdrafts on credit cards within a specific time frame. According to them, a credit card is not a type of prepaid card that enables loading and use of the instrument.

Customers typically pay their credit card bills in excess because they plan to make larger purchases or travel abroad soon. They might have fewer choices now.