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Credit Card Closing New Rules: 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 to some extent. If there is no annual fee on the card that you want to close, then there is no problem in not closing it. On the other hand, if the card is being charged every year and you are not even using it, then you should consider closing it. This is because you are not even using that card, which not only gives you the benefit of reward points, but on top of that you also have to pay a charge for it. Many times it has also been seen that banks are reluctant to close the card. Now the question is how do you close your credit card and what are the rules of the Reserve Bank (RBI Rule) regarding this?
RBI rules regarding closing the credit card
As per the rules of the Reserve Bank of India, if any customer requests to close the credit card, it has to be implemented 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, which it has to pay to the customer. However, keep one thing in mind here that there should not be any outstanding amount on your credit card.
How to close your credit card?
Closing a credit card is not a very difficult task, it can be closed easily. You just have to follow these 5 easy steps.
1- Pay your dues first
Before closing any credit card, you have to pay all its dues. Until you pay the due amount, your credit card will not be closed, even if your dues are just a few rupees.
2- Redeem your reward points
Many people forget to redeem their reward points in a hurry to close a credit card. The money you have spent using that credit card has earned you reward points. In such a situation, do not hesitate before redeeming the reward points while closing the card.
3- Check standing instructions
Many times people write standing instructions on their credit cards for some recurring payments, such as insurance premium, OTT monthly fee or something else. Before closing the card, make sure once that there is no such instruction on it, otherwise your payment may stop after the card is closed. If the premium stops, your policy may be in danger.
4- Call the bank
The next step is that you have to call your credit card bank. You have to tell them that you want to close your card. The bank may ask the reason for closing the credit card, which you have to answer. After this, after taking the necessary information, a request will be made to close your credit card. The bank may ask you to send an email or ask you to cut the card and email its photo, so you have to do that too.
5- Don't forget to cut the card
The most important thing to do to close your credit card is to cut it diagonally. Otherwise, if it falls into the wrong hands, it is possible that some of your information can be stolen or it is possible that some fraud can be committed in your name. Do not just throw the card in the dustbin, first cut it, then throw it away.