Credit Card Holder Dies: Do Families Pay Bills? RBI Guidelines Explained
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Moneycontrol•16-01-2026, 13:05
Credit Card Holder Dies: Do Families Pay Bills? RBI Guidelines Explained
- •Credit cards are unsecured loans; the liability rests solely with the cardholder, not their family.
- •Banks cannot force family members to pay outstanding credit card bills from their personal funds after the cardholder's death.
- •Banks can recover dues from the deceased's assets (bank accounts, FDs, property) before heirs receive them.
- •If assets are less than the outstanding amount, the bank can only recover up to the asset value; the rest is waived.
- •Joint cardholders or guarantors are liable. Families should inform the bank and block the card immediately.
Why It Matters: Families are not personally liable for a deceased's credit card debt, but banks can recover from assets.
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