A Shocking Credit Card Closure Experience with ICICI Bank
In July 2024, I requested the closure of my ICICI Bank Coral credit card (ending in 2009). The bank confirmed that the card was closed. But little did I know, this was the beginning of an exhausting 10 month ordeal involving hidden policies, credit bureau delays, and violations of RBI credit card closure rules.
If you have an ICICI credit card or any card from a major Indian bank read this carefully. What happened to me could happen to anyone.
Credit Report Still Showing Card Account as Active
A few months after initiating closure, I checked my CIBIL credit report, only to find that the ICICI credit card account was still listed as active. This was surprising, as I had received confirmation of its closure.
Despite multiple follow-ups, the account stayed open for 8+ months, affecting my credit profile and raising serious concerns.
Multiple Credit Cards Clubbed into One Account
ICICI Bank later informed me that three credit cards had been clubbed under a single customer account—a detail they never disclosed when issuing the cards:
· ICICI Coral Credit Card – Closed in July 2024
· ICICI Rubyx Dual Variant Life-Time Free Cards Closed in November 2024
They claimed that closing just the Coral card wasn’t enough; the account would only close when all associated cards were also closed. This internal linkage was never transparently communicated.
Non-Closure Over ₹0.55 Outstanding Balance
In March 2025, ICICI cited a ₹0.55 outstanding balance yes, less than one rupee as the reason for not closing the account. This amount was never communicated to me earlier, and no reminders were issued.
This kind of technical excuse to delay credit card closure is not only frustrating but also potentially in violation of consumer protection norms.
RBI Credit Card Closure Guidelines (2022 Update)
According to the RBI Master Directions on Credit and Debit Card Issuance, updated in 2022:
· Credit card closure requests must be completed within 7 working days.
· Delays entitle customers to ₹500 per day compensation.
· Failure to update closure with credit bureaus (CIBIL, Experian, etc.) can result in ₹100 per day compensation.
In my case, ICICI violated both clauses:
· The card remained active for over 230 days after closure was initiated.
· The account wasn’t correctly reported to credit bureaus.
I calculated that under RBI’s ₹500/day rule, I am eligible for ₹1,16,500 in compensation. I even chose to not claim the ₹100/day non reporting penalty to keep my case straightforward and fair.
My RBI Ombudsman Complaint Against ICICI Bank
After repeated escalations and no resolution, I filed a formal complaint with the RBI Integrated Ombudsman in April 2025.
Here’s how ICICI reacted:
· Initial offer: ₹9,600 compensation rejected.
· Official response to RBI: ₹12,300 again, I declined.
· Unconsented credit to my account: ₹25,900 on May 30, 2025 while the case is still under review.
This was done without my written consent, and I have formally rejected it in emails to both ICICI Bank and the RBI Ombudsman.
credits : Reddit