13/11/2024
The Reserve Bank of India (RBI) introduced a regulation effective from July 1, 2022, stipulating that credit card companies must process a cardholder’s request for closure within seven working days, provided all dues are cleared by the cardholder. If there is any delay beyond this period in closing the credit card account, the card issuer is liable to pay a penalty of Rs 500 per day to the customer for each day of delay. This measure aims to ensure timely service and protect consumer rights in credit card operations. This regulation applies to all scheduled banks and non-banking financial companies (NBFCs) in India, excluding payments banks, state co-operative banks, and district central co-operative banks. Here are some key points:- **Request for Closure**: Must be honored within 7 working days if all dues are paid.- **Notification**: Cardholders should be notified immediately about the closure via email, SMS, etc.- **Penalty for Delay**: Rs 500 per day until the account is closed.- **Credit Information Update**: The closure must be updated with Credit Information Companies within 30 days.This rule was part of RBI’s broader guidelines to enhance transparency and consumer protection in credit and debit card services. If you’re facing issues with credit card closure, this regulation empowers you to demand compensation for any undue delay.