close credit card

Now it is easy to close the credit card – if not done in 7 days, the bank will have to pay 500 rupees daily

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If have you question in your mind – how to close credit card – Now it is easy to close the credit card – if not done in 7 days, the bank will have to pay 500 rupees daily.

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A new rule has been issued by the RBI to close the credit card. As per these rules, credit card holders have to close their credit cards within seven days after paying all their dues.

Some important guidelines regarding issuance and operation of credit cards have been issued by the Reserve Bank of India (RBI). Guidelines on Credit Card and Debit Card Issues and Conduct, 2023 have been issued by the Reserve Bank of India.

These guidelines will be effective from 1 July 2023. In India, all scheduled banks and non-bank financial companies (NBFCs) that provide credit cards shall be subject to the following rules and regulations:

RBI rules on closing credit cards

  • The RBI directive states that any request for closure of a credit card must be completed by the credit card-issuer within seven working days, subject to payment of all dues by the cardholder.
  • The closure of the Credit Card should be immediately informed to the Cardholder about the closure through email, SMS etc.
  • The credit card issuer will have to provide multiple channels for submitting the request for closure of the credit card account.
  • These include helpline, dedicated e-mail-id, Interactive Voice Response (IVR), prominently visible link on the website, internet banking, mobile-app or any other mode.
  • The Card-Issuer will not insist on sending the closure request by post or by any other means which may result in delay in receipt of the request.
  • If the card issuer fails to process the credit card closure within seven working days, it should pay a late penalty of Rs 500 per day to the customer till the account is closed, provided there is no outstanding balance in the account.
  • If the credit card has not been used for a period exceeding one year, the card issuer may initiate the process of closing the credit card account after notifying the cardholder.
  • If there is no response from the Cardholder within a period of 30 days, the Card Account will be closed by the Card Issuer, subject to payment of all dues by the Cardholder.
  • The card issuer will have to inform the credit information company about the card closure within a period of 30 days.
  • After the credit card account is closed, any credit balance available in the credit card account must be transferred to the cardholder’s bank account.

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Know these rules too

RBI guidelines allow the credit card issuer to close the credit card account after not using the account for one year.

Further, if all bills are paid within 30 days, the card issuer may discontinue the card if the cardholder fails to respond. When a card is closed, the issuer must notify the credit reporting agency within 30 days.

As per RBI policy, if there is a credit balance in the credit card account when the account is closed, it should be transferred to the cardholder’s bank account.

Please pay attention:

  • The process of closing the credit card of each bank may be different.
  • Before closing the credit card, it is necessary to pay its dues.
  • If you are sending a written application, destroy the credit card and send its pieces, otherwise it can be misused.
  • Your credit card will be considered closed only after the message or email is received from the bank.

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