Credit card closure is easy, if not done in 7 days, the bank will give you Rs. 500 per day
Latest Credit Card Rules: The RBI has issued new rules regarding the closure of credit cards. According to these rules, if the credit card holder has paid all the outstanding amount, the request to close the credit card must be completed within seven days.
The Reserve Bank of India (RBI) has issued some important guidelines on the issue and operation of credit cards. These guidelines are named Reserve Bank of India (Credit Card and Debit Card - Issues and Conduct) Guidelines, 2022. This guide will be effective July 1, 2022. The credit card rules and regulations of this guide will apply to all Scheduled Banks (except Payment Banks, State Cooperative Banks and District Central Cooperative Banks) operating in India and NBFCs.
Rules for credit card companies
According to the guidelines, if the card issuing company or bank delays closing the credit card account, it will have to pay a penalty to the cardholder.
The following are RBI's rules regarding credit card closure:
a) The RBI guidelines state that if the credit card holder has paid all the dues, the credit card closure request must be processed within seven days.
b) The cardholder should be notified of the credit card termination immediately via SMS or email.
(c) These instructions state that companies cannot force cardholders to send closure requests by post or otherwise. This may cause a delay in receiving the request.
(d) If the card issuing company or bank does not complete the process of closing the credit card within seven working days, they will have to pay a penalty of Rs.500 per day till the account is closed.
Also know these rules
According to RBI guidelines, if the credit card has not been used for more than a year, the credit card issuer can start the process of closing the credit card account after notifying the cardholder.
At the same time, if the cardholder does not respond within 30 days, the card issuer can close the card if all bills are cleared. The card issuer must notify the credit information company within 30 days of the card closing.
The RBI has said that when closing a credit card account, if the credit card account has a small credit balance, it will have to be transferred to the cardholder's bank account.
29-Sep-2024