How I Received ₹28,000 Compensation from BOI for Delayed Credit Card Closure

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A True RBI Circular Success Story

If you’ve ever had trouble closing a credit card because the bank took too long, you’re not alone. Recently, I went through just that with the Bank of India (BOI) and thanks to a new RBI circular, received ₹28,000 in compensation.

This is how it happened and what you need to do if you’re in the same situation.

Background: The Reason Why I Closed My BOI Credit Card

Many years ago, I was issued my first credit card by BOI during my work with the bank. It worked for me then, but year by year, I changed to better cards with enhanced benefits and no longer used the BOI card.

However, BOI had no online facility to close credit cards, so I had to send a written application requesting card closure. Although I sent several written requests over the course of over one year, there was no reply or action from the bank.

RBI Steps In: New Guidelines on Credit Card Closures

The Reserve Bank of India (RBI) recently released a fresh circular of rules for credit card regulation. The single most important rule that caught my eye was:

If a bank doesn’t close a credit card within 7 working days of receiving a request from the customer, it is liable to pay a penalty of ₹500 for every delayed day.

This rule finally gave the consumer the power again.

Taking Action: How I Escalated and Got Results

Equipped with this fresh information, I made a second physical application to BOI for card closure—this time making sure I retained the acknowledgment receipt. I waited for 30 days as per escalation standards and then made a grievance complaint with the RBI.

After 56 days, my credit card was finally closed by the bank—and to my surprise, they also gave ₹28,000 as compensation for the delay, as per the RBI’s circular.

If you are looking to shut down a credit card, here’s what you need to do:
Write to the bank and maintain evidence of sending it (such as a receipt).
In case of inaction within 7 working days, the bank will be legally obligated to pay ₹500/day as fine.
After 30 days, take up the matter on the RBI complaint platform.
Be insistent, and be aware of your rights as per RBI rules.

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That’s a solid win and a great example of using RBI rules to your advantage.

BOI delayed your credit card closure, but thanks to the new RBI rule, you were able to get ₹500 per day for the delay. You did the right thing by keeping proof of your closure request and escalating through RBI’s complaint portal.

Getting ₹28,000 as compensation is huge. If anyone’s facing the same issue, just send a written closure request, keep the receipt, wait 7 working days, and if there’s no action, raise a complaint with RBI. The rule is clear and finally puts the power back in the customer’s hands.