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.