Today, getting a credit card is simple, but to get rid of one, you have to follow some procedures. According to the Reserve Bank of India’s new regulations, credit card firms are obligated to comply with clients’ requests for closure. Credit card agents try their best to convince users to keep their cards in order to keep them as customers. They offer a number of incentives, including the chance to increase the credit limit and a waiver on the annual card fee. Additionally, it usually takes the company two to three confirmation calls after the customer is certain they want to close the credit card before the card is truly closed.
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The RBI’s ‘Master Direction – Credit Card and Debit Card – Issuance and Conduct Directions, 2022’ mandates that credit card providers honour all requests for the cancellation of credit cards. As long as the customer has settled all remaining debt, the closure must be done within seven days. “Immediately following the closure of the credit card, the cardholder must be informed via email, SMS, etc. The option to request the closure of a credit card account through a variety of channels, including a helpline, a dedicated email address, Interactive Voice Response (IVR), a link that is clearly visible on the website, internet banking, a mobile app, or any other mode, shall be made available to cardholders,” the RBI directions further adds.
The RBI additionally ruled that credit card companies cannot compel users to send posts with closure requests. If a credit card company does not terminate the card within seven working days of the customer’s request, it would be subject to a fine of Rs 500 per day.
The card issuer can begin the process of closing the credit card account after notifying the cardholder if a credit card has not been used for more than a year. If the cardholder doesn’t respond within 30 days, the card issuer may cancel the account after the customer has paid all outstanding debts.
Within 30 days of closing the card, the card issuer must notify the credit information company. Any credit balance that may remain after the credit card account is closed should be transferred to the cardholder’s bank account.
