Summary of this article
RBI ensures 7-day credit card closure rule.
Zero liability applies if fraud reported quickly.
Ombudsman helps resolve unresolved credit card complaints.
Credit card spending has reached an all-time high in India. According to the Reserve Bank of India's (RBI) payments data, transactions using credit cards touched new records in September 2025 (around Rs 2.27 trillion), with about 113.4 million cards in use. The growing use of cards reflects rising financial confidence among consumers, but it also portrays a rise in complaints.
According to RBI's annual report on the Ombudsman Scheme, published earlier this year, complaints related to credit cards increased by 23.95 per cent from the previous year, comprising a staggering 14.40 per cent of total complaints lodged.
7-Day Card Closure
One of the key measures for credit card users is the 7-day closure mandate under RBI's Master Direction on Credit and Debit Card – Issuance and Conduct, 2022. In case a cardholder desires to close a credit card, the bank should process the same within a maximum period of seven working days. The bank is also liable to send written confirmation by email, SMS, or letter once the card is officially closed.
This rule forbids banks from charging any annual or renewal fees once a closure request has been initiated. Many users previously fell into trouble as their closure requests stayed pending for weeks, leading to being charged with interest and penalties. This rule makes the process faster and more transparent so that customers are not charged for cards they don't use.
Zero And Limited Liability In Fraud Cases
RBI's Customer Protection-Limiting Liability of Customers in Unauthorised Electronic Banking Transactions framework gives strong protection to victims in fraud cases. If a customer reports a fraudulent transaction within three working days, they will have zero liability; hence, they will bear no financial loss.
The mantra here is: act fast. The day the user detects an unauthorised transaction, he/she should block the card and inform the bank through official channels. The earlier this is reported, the fewer the losses will be, and it will cover the customer under zero or limited liability.
Complaints Through RBI Ombudsman
If the bank does not resolve the issue within a reasonable time, then customers can reach out to the RBI Integrated Ombudsman Scheme. The ombudsman provides an easily accessible, no-cost platform for customers to report complaints about inordinate delays, wrongful charges, or fraud that have not been properly addressed.
First, you are to send a written complaint to the bank. If no satisfactory response is received within 30 days, the customer can approach the ombudsman through RBI's official website or email. The ombudsman goes through each case and directs the bank to take corrective measures if it feels so.
These will be effective only when people are informed about them and act on time. Still, many consumers pay for cards not in use or do not report fraud quickly. Being aware of these rights would help avoid financial stress and unnecessary fees. With an ever-increasing usage of credit cards, knowing these basic protections will help every user become safe and confident.
