It has also been seen many times that banks are reluctant to close the card. Now the question is how to close the credit card and what are the rules of the Reserve Bank regarding this?
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 a bit. If there is no annual fee (Credit Card Annual Fees) on the card you want to close, then there is no problem if you do not close 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, so that you get the benefit of reward points (Credit Card Reward Points), on top of that you have to pay a charge for it. It has also been seen many times that banks are reluctant to close the card. Now the question is how to close your Credit Card and what are the rules of the Reserve Bank (RBI Rule) regarding this?
RBI rule regarding closing credit card
According to the rules of the Reserve Bank of India, if any customer puts a request to close the credit card, then it must 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 has to be paid to the customer. However, one thing to keep in mind here is that there should not be any outstanding balance 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- First of all pay your dues
Before closing any credit card, you have to pay all its dues. Your credit card will not be closed until you pay the outstanding amount, 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 the credit card. You have earned reward points from the money you have spent using that credit card. In such a situation, do not hesitate before redeeming the reward points while closing the card.
3- Check the standing instructions
Many times people put standing instructions for some recurring payments on their credit card, such as insurance premium, OTT monthly charge 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, it may put your policy in danger.
4- Call the bank
The next step is that you have to call your credit card bank. You will have to tell them that you want to close your card. The bank may ask the reason for closing the credit card, which you will have to answer. After this, your request to close the credit card will be taken after taking the necessary information. The bank may ask you to send an email or ask you to cut the card and email its photo, then you will have to do that too.
5- Do not forget to cut the card
The most important thing 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 from it or it is possible that some fraud can happen in your name. Do not just throw the card in the dustbin, first cut it, then throw it.
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