How much time it can take to close a credit card

Credit Card closure time and RBI rules: It is mandatory for credit card companies to honour any request for the closure of a credit card.

How much time it can take to close a credit card
Know how much time it can take to close a credit card. Representative image

While getting a credit card these days is easy, closing it could be a very annoying experience. As per the rules, it is a must for credit card companies to act upon closure requests made by customers. To avoid losing a customer, credit card representatives do their best to persuade the user to retain the card. They make several offers, including a credit limit upgrade and the option to make the card free from annual charges. And when the customer is sure about closing the card, it takes at least two-three confirmation calls from the company before the card is actually closed.

According to RBI rules, it is mandatory for credit card companies to honour any request for the closure of a credit card. It has to be done within seven days provided the customer has paid all dues.

“Any request for closure of a credit card shall be honoured within seven working days by the credit card issuer, subject to payment of all dues by the cardholder,” says RBI’s “Master Direction – Credit Card and Debit Card – Issuance and Conduct Directions, 2022”.

Also Read: No need to panic if you just missed the Credit Card payment due date. Read what RBI says

It is also mandatory for credit card companies to provide multiple options to cardholders for submitting the closure request. These channels include a dedicated email-id, helpline, IVR, link on the official website, internet banking, and mobile app, according to RBI rules.

“Subsequent to the closure of credit card, the cardholder shall be immediately notified about the closure through email, SMS, etc. Cardholders shall be provided option to submit request for closure of credit card account through multiple channels such as helpline, dedicated e-mail-id, Interactive Voice Response (IVR), prominently visible link on the website, internet banking, mobile-app or any other mode,” the RBI directions say.

No closure request through post

Credit card companies can’t force customers to send closure requests through posts. “The card-issuer shall not insist on sending a closure request through post or any other means which may result in the delay of receipt of the request,” RBI says.

Rs 500/day penalty if card not closed within 7 days

A credit card company will have to pay a penalty of Rs 500 per day if it fails to close the card within seven working days of the request made by the customer.

“Failure on the part of the card-issuers to complete the process of closure within seven working days shall result in a penalty of Rs 500 per day of delay payable to the customer, till the closure of the account provided there is no outstanding in the account,” says RBI.

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First published on: 17-10-2022 at 14:09 IST