RBI: ₹500 Daily Pay for Delayed Credit Card Closures
By ThePip Desk
Know your rights! RBI mandates banks pay ₹500 daily for delayed credit card closures beyond 7 days. Learn how to claim your compensation.
If you’re trying to close an unused credit card, know your rights: the Reserve Bank of India (RBI) requires banks to finalize closure within seven working days. Should they fail, you are entitled to compensation for each day of delay.
This is a crucial rule for first-time earners managing their finances. If a bank doesn’t meet the seven-day deadline, it must pay you ₹500 for each day the closure is delayed. This compensation continues until your account is officially closed.
Understanding the Compensation Details
The RBI’s directive means a bank could be liable for significant amounts. One cardholder recently received ₹3.21 lakh in compensation due to months of delay. You have a right to this daily penalty if your request isn’t processed promptly.
How to Ensure a Smooth Credit Card Closure
First, make sure you clear all your outstanding dues. This includes any EMIs and unbilled charges on your card.
Next, submit your closure request through official channels. Use net banking, mobile apps, or official email to ensure you get a date-stamped acknowledgment and a ticket number.
Remember to redeem any accumulated reward points. Card issuers are required to give you a 30-day window to do this before final closure.
What to Do if Your Closure is Delayed
If your credit card account remains active beyond the initial seven-day period, you need to escalate the issue. Contact the bank’s Principal Nodal Officer, referencing your ticket number and the relevant RBI Master Direction clause.
Should the bank still fail to resolve the issue or process your daily penalty within 30 days of your escalation, you have another option. You can then file a complaint directly with the RBI Ombudsman through its Complaint Management System portal, found at cms.rbi.org.in.
Knowing these RBI guidelines empowers you to protect your credit score and avoid unnecessary fees. Don’t let banks delay your financial freedom; act promptly and follow these steps to ensure a hassle-free credit card closure.