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Bank pays Rs 3.21 lakh for credit card closure delay RBI penalties can reach this much
Economy
Published on 24 April 2026
Seven working days is the limit before Rs 500 per day
RBI rules require card issuers to complete credit card closure within seven working days. If they fail, they must pay a penalty of Rs 500 per calendar day of delay to the cardholder, until closure—assuming there is no outstanding balance. In one case, the compensation reached Rs 3.21 lakh, highlighting how quickly delays add up.
- RBI sets a 7 working-day deadline for credit card closure
- Penalty is Rs 500 per calendar day of delay
- Payment continues until closure if no outstanding exists
- Recent case saw compensation total Rs 3.21 lakh
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times