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If you use a credit card, but do not want to use it anymore and are thinking of closing it, then this news is for you. Often users get worried when they see that banks do not approve the application to close the credit card quickly or delay the process of closing the credit card, but today we are going to tell you a rule that will solve your problem.
It often 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 be aware of 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 RBI rule say?
As per the rules of the Reserve Bank of India, if a customer submits a request to close a credit card, it has to initiate the process within 7 days. If the card issuing bank or institution is unable to do so, then after a period of 7 days, a penalty of Rs 500 per day is levied and this amount has to be paid by the customer. However, it is important to keep in mind that there should be no balance on your credit card. This rule was implemented by RBI in the year 2022.
Credit card gets closed in just five steps
-Closing a credit card is not a difficult process. You can close your credit card very easily.
-Before closing any credit card, you have to pay its dues. The credit card will not be closed until the balance is paid.
-Many people do not redeem reward points before closing the credit card. You earned these points by spending. In such a situation, it is your right to redeem it.
-Many times people put a permanent notice on their credit card for some recurring payments, like insurance premium, OTT monthly fee 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 it will ask for details, after which the process will be started.
After this, when your card gets closed, tear it into pieces so that no information goes into the wrong hands.