Key Rights Under RBI's 2022 Master Direction
- No unsolicited cards/enhancements: A credit card, or an enhancement to the credit limit, cannot be issued without the cardholder's explicit consent — an unsolicited card issued and later billed for an annual fee is not payable.
- Closure within 7 working days: A card closure request (through helpline, email, IVR, website, internet banking, or app) must be honoured within 7 working days, once all dues are paid. If the issuer fails this timeline, it must pay a penalty of ₹500 for each day of delay to the customer, provided there is no outstanding balance.
- Disputed "fraud" transactions: No charges are payable on a transaction disputed as fraud until the dispute is resolved.
- Deemed closure: If a card is not used for a year, the issuer must inform the cardholder that the card will be closed unless the cardholder responds within 30 days.
Common Grievances
- Wrongful billing: Charges for a transaction never made, or a merchant transaction that failed/was never delivered but was still billed.
- Closure/annual-fee disputes: Annual fee charged on a card requested to be closed, or closure requests not honoured within the mandated timeline.
- Unconsented recurring charges: Subscription/auto-debit mandates continuing to be charged after a cancellation request through the bank/NPCI e-mandate system.
- Reward points wrongly forfeited: Points expired or cancelled contrary to the disclosed programme terms.
- Wrong CIBIL reporting: Card reported delinquent despite the dispute being under process, or after full payment.
Applicable Law
A card issuer providing credit card services for consideration is a "service" provider under Section 2(42), CPA 2019, and the cardholder is a "consumer" under Section 2(7). A breach of the RBI's mandated timelines/consent requirements, or wrongful billing, is "deficiency" under Section 2(11); issuing a card/enhancement without consent is itself an unfair practice specifically prohibited by RBI's Master Direction.
Jurisdiction & Forum
| Forum | Pecuniary jurisdiction | Location |
|---|---|---|
| DCDRC Puducherry | Value of goods/services paid as consideration up to ₹50 Lakh | Lawspet, Puducherry |
| SCDRC Puducherry | ₹50 Lakh to ₹2 Crore; also first appeals from DCDRC orders | Lawspet, Puducherry |
| NCDRC | Above ₹2 Crore; also first appeals from SCDRC orders | New Delhi |
(Section 34(1)/47(1)(a)(i)/58(1)(a)(i) of the Act itself set these thresholds at ₹1 Crore / ₹10 Crore / above ₹10 Crore; each carries a proviso letting the Central Government prescribe a different value. Exercising that power, the Consumer Protection (Jurisdiction of the District Commission, the State Commission and the National Commission) Rules, 2021 currently set the values shown in the table above.) A Puducherry cardholder may generally file at DCDRC Puducherry under Section 34(2).
Limitation Period
Under Section 69, CPA 2019, a complaint must ordinarily be filed within two years from the date the cause of action arose — the date of the disputed charge, or the date the closure timeline lapsed without action.
Documents Typically Needed
- Credit card statement(s) showing the disputed charge(s)
- Written dispute/closure request and the date it was raised, with acknowledgment
- Card issuer's response, if any, and any card programme/reward terms relied upon
- Merchant transaction proof (or non-delivery proof, for a disputed purchase)
- Correspondence with the card issuer's Grievance Redressal Officer
General Process Outline
- Step 1 — Written dispute: Raise the disputed charge/closure request in writing with the card issuer, retaining acknowledgment of the date raised.
- Step 2 — Regulatory escalation (optional): A complaint may be filed with the RBI Integrated Ombudsman (cms.rbi.org.in), free of cost.
- Step 3 — Legal notice: A written notice to the card issuer setting out the grievance and relief sought.
- Step 4 — File the complaint: Under Section 35, with supporting documents, at DCDRC Puducherry, online via e-jagriti.gov.in or in person; it is heard on the basis of an affidavit and documentary evidence (Section 38(6)).
- Step 5 — Admission and hearing: Per Section 36 (admission, ordinarily within 21 days of filing) and Section 38 (notice to the opposite party within 21 days of admission; response within 30 days, extendable by 15 days), then hearing and evidence.
- Step 6 — Order: Under Section 39, the Commission may direct relief it considers appropriate on the facts proved, including the RBI-mandated ₹500/day closure-delay penalty where applicable; the Act does not fix or guarantee any specific outcome beyond what the applicable direction itself prescribes.