If your bank keeps your credit card open after a valid closure request, RBI rules turn each lost day into money you can claim: the issuer must close the card within 7 working days or pay you Rs 500 for every day of delay, provided you have cleared all dues. Most cardholders never ask for this penalty, so banks quietly pocket the delay. You do not have to.
Quick answer: Once dues are cleared, RBI rules force a credit card issuer to act fast.
What this is. A credit card closure refusal is when a bank or card issuer ignores, stalls, or rejects your request to shut a card you no longer want. Under RBI rules the issuer cannot drag its feet or force a branch visit. Delay past 7 working days triggers an automatic daily penalty payable to you, the cardholder.
The governing rule is the Reserve Bank of India Master Direction - Credit Card and Debit Card (Issuance and Conduct) Directions, 2022. It took effect on 1 July 2022 and binds every bank and non-banking card issuer in India. The Reserve Bank of India is the authority that frames and enforces it.
Paragraph 8 of the Master Direction sets out closure rules. Any request to close a credit card must be honoured within 7 working days, subject to the cardholder clearing all dues. If the issuer fails, it must pay ₹500 per day of delay to the cardholder until the account is actually closed, provided there is no outstanding amount in the account. The Master Direction states the penalty is calculated per calendar day, so weekends and holidays count too.
The issuer must let you ask for closure through several channels and cannot insist only on a branch visit. After closing the card, the issuer must notify you by email or SMS.
Dr. Shrawan Kumar Pathak, Gorakhpur district, Uttar Pradesh. On 3 February 2026 he cleared his full balance and asked his bank to close a credit card through the mobile app, saving the ticket number. The 7 working days lapsed on 12 February 2026 with the card still active. He wrote again quoting Paragraph 8 of the RBI Master Direction. The bank stalled, so on 6 March 2026, after 30 days, he filed at https://cms.rbi.org.in. The Ombudsman process led the bank to close the card and pay ₹500 for each day of delay from 13 February to closure.
The Reserve Bank of India is a public authority under the RTI Act, 2005, so you can file an RTI for records and policy, such as circulars on credit card closure or aggregate complaint data. Be clear, though: RTI is not the tool that recovers your ₹500 penalty. The operative remedy is the RBI Ombudsman under the RB-IOS, 2021 via https://cms.rbi.org.in. Use RTI to understand the rules and the regulator, and the Ombudsman to get paid.
You can draft an RTI in minutes with the AI RTI Drafter, and if a public authority stonewalls you, build a first appeal with the First Appeal Builder.
To, The Central Public Information Officer Reserve Bank of India Subject: Request for information under the RTI Act, 2005 Under Section 6(1) of the RTI Act, 2005, please provide: 1. A copy of the current Master Direction and any amendments governing the closure of credit cards, including the 7 working day rule and the Rs 500 per day penalty. 2. Any circular or guidance on the channels through which a cardholder may request closure. 3. The number of credit card closure related complaints received by the RBI Ombudsman in the last financial year, in aggregate. I request the information under Section 7(1) within 30 days. I enclose the fee of Rs 10. If any part is held by another authority, please transfer it under Section 6(3). If this request is not answered within 30 days, I will file a first appeal under Section 19(1). Name: Address: Date:
Seven working days from when the issuer receives a valid closure request, provided you have cleared all dues. This is set in Paragraph 8 of the RBI Master Direction - Credit Card and Debit Card (Issuance and Conduct) Directions, 2022. Working days exclude Sundays and bank holidays.
The issuer must pay you ₹500 for every day of delay beyond 7 working days, until the card is actually closed, provided there is no outstanding amount in the account. The penalty is counted per calendar day, so weekends and holidays count too.
No. The issuer must let you request closure through channels such as a helpline, a dedicated email ID, IVR, a clearly visible link on its website, internet banking, or the mobile app. Insisting only on a branch visit is not allowed under the Master Direction.
Yes. After closing the card, the issuer must notify you immediately by email or SMS. Keep that message, since it fixes the closure date and helps you calculate any penalty owed for delay.
Write again quoting Paragraph 8 and demand the ₹500 daily penalty. If the issuer does not resolve your complaint within 30 days or rejects it, file with the RBI Ombudsman under the RB-IOS, 2021 at https://cms.rbi.org.in. The Ombudsman can direct closure and payment.
No. The ₹500 per day penalty applies only when there is no outstanding amount in the account. Clear every due, including annual fee and interest, before you ask for closure, so the bank cannot use a balance to deny you.
No. RTI helps you obtain records and policy from the RBI, which is a public authority under the RTI Act, 2005. The remedy that recovers the penalty is the RBI Ombudsman under the RB-IOS, 2021, not an RTI application.
Yes. The Master Direction binds banks and non-banking card issuers operating in India. The 7 working day closure rule and the ₹500 daily penalty apply across these issuers, as long as you have cleared all dues.