If you have got a credit card, but now you do not want to use it and are thinking of closing it, then this news is for you. It is often seen that banks do not approve the application to close the credit card quickly or delay the process of closing the credit card, at such times the user gets upset, but today we are going to tell you such a rule, which will solve your problem.
Many times it happens that you have many credit cards. In such a situation, if you close some of your cards, then your expenses can be reduced. But if the bank is reluctant to close the card, then you should know this rule of RBI. Actually, a rule of RBI says that if a bank delays in closing the credit card, then it will have to pay a fine of Rs 500 per day to the users.
What does the RBI rule say?
According to the rules of the Reserve Bank of India, if a customer puts a request to close the credit card, then it is necessary to start the process within 7 days. If the bank or institution issuing the card is unable to do so, then after a period of 7 days, a penalty of Rs 500 per day is imposed on it and this amount has to be paid to the customer. However, one thing is important to note that there should not be any outstanding on your credit card. This rule was introduced by RBI in the year 2022.
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Credit card can be closed in just five steps.
Closing the credit card is not a difficult process. You can close the credit card very easily.
- Before closing any credit card, you have to pay its dues. The credit card will not be closed until the dues are paid.
- Many people do not redeem reward points before closing the credit card. You have earned these points by spending. In such a situation, it is your right to redeem them.
- Many times people put standing instructions for some recurring payments on their credit cards, like insurance premium, OTT monthly charge or something else. Clear it completely before closing it.
- Now you have to call the bank and tell them that you want to close the credit card. After this, they will ask for the details, after which the process will be started.
- After this, when your card gets blocked, cut it so that no information reaches the wrong hands.
