New Delhi: Are you one of those who want to apply for additional credit cards? If so, you should be aware of the general instructions issued by the central bank regarding the issuance of credit and debit cards. The instructions were issued on April 21.

The new credit card guidelines specify that supplemental credit cards should be issued with a clear understanding that the liability will be that of the principal or primary cardholder.

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What are complementary credit cards?

Complementary credit cards are basically additional credit cards issued against a primary credit card. For example, if there is someone in your family who is not eligible for a credit card, then you have the option of applying for an add-on card in that family member’s name.

Also note that the overall credit limit remains the same for the main card and the complementary card combined. This means that the additional credit cardholder will share the credit limit with the primary cardholder. Remember that there will be no additional credit limit on their card.

Indeed, a single consolidated credit card statement including the transactions carried out on the complementary card will be issued to the primary cardholder. Such a consolidated statement will show all payments, purchases and other credit and debit transactions in addition to details of rewards points earned on the primary and complementary card.

What is the responsibility for payment in additional cards?

Remember that the main cardholder will be solely responsible for paying the fees incurred on the complementary card. In the event of an outstanding balance on the complementary card, the charges incurred for it will be reflected in the primary cardholder’s statement. It will also directly affect his credit score.

Therefore, card users should use the card with discipline and ensure that all dues are paid on time to avoid charges.

Normally, additional credit cards can be used free of charge. Card issuers such as SBI Card and ICICI Bank offer an additional card at no additional cost. But remember that fees including cash advance fees, overlimit fees, late payment fees and others will still apply.

Fees and charges on complementary credit cards vary from issuer to issuer; card users should check the applicable fees before applying for a complementary card.