Credit cards these days are turning out to be a pain in the neck for most users. Thousands of credit card holders face the problem of being blacklisted in banks' central database even after having cleared all dues with the bank.

To all these users there is a pain killer coming up. RBI is framing a set of guidelines for banks saying that they should not put those people in defaulter's list who have cleared their dues after paying the negotiated amount to the bank.

Currently, the scenario says that even after a person has paid the negotiated amount to the bank, he is still considered to be a defaulter and his name still bears itself in the defaulter's list of the bank. As a resultant, his name features in the list of defaulter's prepared by the Credit Information Bureau of India Ltd (CIBIL). CIBIL publishes its list based on the records provided by the banks.

The blacklisted person is in for a pain as this makes most loans off-limit for him be it a home loan or a personal loan from any bank or financial institution. In order to come out of this chaos, the customer has to settle the new bill that is made by the bank which consists of the ‘balance amount' plus interest plus penalty charges.

A RBI personnel has said that RBI is strictly looking into the matter and will soon come out with an appropriate solution. CIBIL MD Arun Thukral added that RBI has held a series of meeting on the issue with banks and CIBIL.

As per Mr. Thukral, presently when dues are settled by a customer, the remaining is considered by the bank in its books as ‘written off.' But most often, banks raise demand for payment of a small leftover amount which should not have been the case. Still in other cases, banks charge annual fees from the customer which otherwise had been declared free of cost.

Such are the delinquencies occurring from the part of banks and need amendments.