According to the Reserve Bank of India’s Credit Card and Debit Card – Issuance and Conduct Directions, 2022, credit card issuers must close a card within seven working days of receiving a closure request, provided there’s no outstanding balance. If they fail to comply, the bank must pay the customer a penalty of ₹500 per day for each day of delay.
Why You Might Be Entitled to ₹500 Per Day
Reddit users in discussion forums have shared personal experiences confirming the rule in action, citing cases where they successfully claimed ₹500/day as compensation for such delays.
Step-by-Step Guide to Claim ₹500 Per Day for Delayed Closure
Step 1: Clear All Outstanding Dues
Make sure your credit card has zero dues; banks are not obliged to initiate the closure process if any balance remains.
Step 2: Submit Your Closure Request
Use any available method, phone, email, IVR, mobile app, website, or written communication. RBI mandates banks to provide multiple channels for such requests.
Step 3: Track the Working Days
Mark the date of your closure request. Banks must process it within seven working days. If no action is taken by the 8th working day, you’re eligible for compensation.
Step 4: Send Follow-Up Communication
On the 8th working day, send a reminder to the bank, preferably to the nodal or grievance officer, highlighting the delay and requesting closure or compensation.
Step 5: Calculate Compensation
Count the number of days from the 8th working day until the card is actually closed. Multiply by ₹500 per day to arrive at the compensation figure.
Step 6: Escalate if Needed
If the bank doesn’t resolve it, escalate via:
- The bank’s grievance redressal framework (CEO or Nodal Officer),
- Or escalate to the RBI’s Banking Ombudsman, a quasi-judicial authority for unresolved bank disputes.
Compensation Scenario Example
Suppose you requested closure on July 1. By July 9 (8th working day), if the card is still active, the bank owes:
Delay days × ₹500 = Compensation due
Example: 10 days of delay = ₹5,000 owed.
| Step | What to Do |
|---|---|
| 1 | Pay off all dues on your credit card |
| 2 | Submit closure request through any valid channel |
| 3 | Count 7 working days; start tracking from Day 8 |
| 4 | Contact bank with reminder on Day 8 |
| 5 | Calculate ₹500/day until actual closure |
| 6 | Escalate to RBI Ombudsman if unresolved |
By following these steps, you can assert your consumer rights and claim due compensation if your bank delays closing your credit card beyond the allowed timeframe.
Tags: credit card closure, RBI rule, bank penalty, personal finance, credit card hacks, RBI complaint, RBI Ombudsman, money, card closure delay
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