Closing a credit card means ending the credit-card account relationship with the issuer. Simply blocking or temporarily deactivating the card is not the same as closing the account.
Before asking for closure
It is useful to check the following first:
- clear any outstanding dues;
- check whether any EMI transactions are still running;
- review pending refunds, reversals or disputed transactions;
- check whether reward points, cashback or other benefits should be redeemed or encashed before closure, as they may lapse after the card is closed;
- download statements or records you may want later;
- review recurring payments or subscriptions linked to the card.
Treatment of EMIs, rewards and other card benefits can vary by issuer and product, so check the applicable terms before closing the account.
How can you request closure?
RBI requires card issuers to provide multiple channels for submitting a credit-card closure request.
These may include:
- helpline;
- dedicated email address;
- Interactive Voice Response (IVR);
- a prominently visible link on the issuer’s website;
- internet banking;
- mobile app;
- or another suitable mode made available by the issuer.
The issuer should not insist that you send the closure request through post or another method that could delay receipt of the request.
Keep proof of your request
Prefer a closure channel that gives you a written record or reference number.
What if there are outstanding dues?
If dues remain when you request closure, RBI requires the card issuer to provide details of the outstanding amount without waiting for the billing cycle to be completed.
The issuer should advise you to clear those dues so that the closure process can be completed.
The seven-working-day closure period is calculated after excluding the number of days taken by the cardholder to clear the outstanding dues.
Example
The issuer’s seven-working-day closure period is therefore counted after excluding the time you took to clear the dues.
How quickly should the card be closed?
Subject to payment of all dues, a credit-card closure request should be honoured within seven working days.
After closure, the issuer should immediately notify the cardholder through email, SMS or another appropriate mode.
Delay when there is no outstanding?
If the issuer fails to complete closure within seven working days and there is no outstanding amount in the account, RBI provides for:
The compensation continues until the account is closed.
Blocking is not the same as closing
Blocking / Deactivation
Temporarily prevents card usage while the underlying credit-card account relationship may continue.
Closure
Ends the credit-card account relationship with the issuer after the applicable closure process is completed.
What happens to a credit balance after closure?
If a credit balance remains in the credit-card account after closure, RBI requires the amount to be transferred to the cardholder’s bank account.
If the issuer does not already have the required bank-account details, it should obtain them from the cardholder.
After the card is closed
Credit Information Company reporting
RBI requires the card issuer to suitably report the closure of the card account to the Credit Information Companies.
If the issuer does not close the card
First raise the matter through the card issuer’s official grievance mechanism and preserve the complaint or service-request reference number.
If the issuer does not respond within 30 days, rejects the complaint wholly or partly, or you are dissatisfied with the response or resolution, you may lodge a complaint with the RBI Ombudsman, subject to the applicable eligibility requirements.
RBI Complaint Management System →Practical takeaway
Banking rules, contact details and procedures can change. If you notice information on this page that appears outdated or incorrect, please let us know.