In today's digital age, credit cards have become a necessity rather than a luxury. Whether it's for online shopping or unexpected medical expenses, credit cards are a great support when we're short on cash. This is why even middle-class families now have multiple credit cards.

However, many people have a pressing and serious question. If a credit card holder dies unexpectedly, who will repay the money they used? Does this debt fall on the shoulders of heirs or family? Let's find out today.

According to banking laws and Reserve Bank of India (RBI) regulations, credit cards fall under the category of unsecured loans. Just as a home or car loan requires collateral, a credit card requires no collateral. Therefore, the legal responsibility for recovering this loan lies solely with the cardholder.

After the cardholder's death, the bank can take certain necessary steps to recover the outstanding balance. If the deceased person held a fixed deposit (FD), savings account, insurance policy, or any immovable property, the bank can recover the outstanding balance through legal proceedings.

Unless the heirs were co-applicants of the credit card, the bank cannot demand the money from them. By law, the bank cannot legally compel the deceased person's spouse, children, or parents to repay the loan.

If the deceased person doesn't own any property, the bank can't recover the money. In such a situation, the bank declares the outstanding amount as a non-performing asset (NPA) and the loan is written off.

Bank recovery agents often harass or pressure relatives of the deceased. However, RBI guidelines are very strict. Agents cannot physically or mentally harass any individual.

If abusive language or threats are used, action can be taken against the bank involved. It is illegal to collect money from family members who have not signed the loan agreement.

PC: TV9