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In today’s fast-paced life, credit cards have become an essential financial tool. While some people use them responsibly, others fall into a debt trap due to delayed payments, high interest, and penalties. But an important question arises—what happens if a credit card holder dies before clearing the outstanding bill? Are family members legally required to pay the dues?
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News18•15-01-2026, 16:14

Credit Card Debt After Death: RBI Rules on Family Liability Explained

  • •Credit card debt is an unsecured loan; liability rests solely with the cardholder, not family members.
  • •Banks cannot force family or legal heirs to pay from their personal assets after the cardholder's death.
  • •Banks can recover outstanding dues from the deceased's assets (bank accounts, FDs, property) before distribution to heirs.
  • •If heirs inherit assets, banks can recover only up to the value of the inheritance; remaining debt is written off.
  • •Joint cardholders or guarantors are liable for the debt. Inform the bank immediately and submit the death certificate.

Why It Matters: Families are not personally liable for deceased's credit card debt, but banks can claim from inherited assets.

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