A proposed ruling which requires students under 25 to seek their parents' approval before applying for a credit card has been removed from a revised edition of the Code of Banking Practices.
The action follows strong opposition from the local credit card industry after the draft code was released for public consultation in January.
Industry practitioners argued that since a person of 18 could qualify to be a company director they should not be deprived the right to administer their own financial matters.
The original draft code stipulates a card issuer should inform an applicant's parent of the details of the application - including the credit limit to be granted - if he is a full-time student under 25 and does not have proof of financial independence.
Students have long been the banks' favourite target to market credit card products.
In the second half of last year, there was an increase in the number of cases when student card holders were unable to repay their credit card bills.