Credit Card Closure Not Processed? Claim ₹500 a Day

"I asked my bank to close my credit card weeks ago, I have paid everything, and it is still active. Now there is an annual fee on my statement." If this is you, the fix is simple: send a written closure request through an official channel, keep the reference number, and once seven working days pass, claim ₹500 for every day of delay under RBI's card rules. You are owed that money even if you lost nothing else.

This guide covers what to do when a closure request is ignored, delayed or only half done. If you are still deciding whether to close a card at all, start with our decision guide on whether to close your oldest credit card.

What RBI rules say (as of October 2026)

RBI's credit and debit card directions, first issued in 2022 and consolidated for commercial banks in November 2025, set clear duties for card issuers when you ask to close a card:

Two conditions matter. First, the clock runs from the date your request reaches the issuer through a valid channel. Second, all dues must be cleared, including unbilled EMIs and small residual interest. Many "closure not processed" cases turn out to be a leftover ₹40 of interest or GST that posted after the last payment.

Step-by-step: what to do

In the first hour

1. Check what is still pending. Open the card's section in your banking app or net banking and look for any unbilled amount, running EMI, standing instruction or small interest charge. Pay it, even if it is a few rupees.
2. Cancel linked payments. Remove the card from subscriptions, wallets, OTT apps, insurance auto-debits and UPI-linked credit card mandates. A new charge after your request can be treated as a fresh due.
3. Raise the request in writing. Use the app's "close card" or "service request" option, the issuer's official email, or the helpline. Ask for a service request number. If you call, ask the agent to email or SMS the reference.

On the first day

4. Save proof. Screenshot the request, the reference number, the date and time, and your zero-balance statement.
5. Ask for a closure date. Note the seventh working day. Working days exclude Sundays, the second and fourth Saturdays and bank holidays.
6. Do not cut the card yet. Keep it until you get written confirmation that the account is closed.

If it is not closed after 7 working days

7. Send a reminder citing the rule. Mention RBI's credit card directions, the 7-working-day limit and the ₹500-per-day penalty, and ask for both closure and compensation.
8. Escalate to the grievance officer. The issuer's website lists a grievance redressal officer and a principal nodal officer. Write to them with your reference number.
9. Go to the RBI Ombudsman. If the issuer does not reply within 30 days, rejects your claim or pays less than owed, file at cms.rbi.org.in under the Reserve Bank – Integrated Ombudsman Scheme, 2026 (in force from 1 July 2026). The service is free, and the deadline is 90 days from the end of the issuer's 30-day reply period or its last reply, whichever is later.

Worked example: how much the bank owes you

Riya paid her card's full outstanding and requested closure through the app on 2 November 2026. After counting out Sundays and bank holidays, the seventh working day fell on 11 November. The card was finally closed on 26 November.

• Days of delay: 12 November to 26 November = 15 calendar days
• Penalty: 15 × ₹500 = ₹7,500

Meanwhile, the card's anniversary fell on 20 November, so the bank billed an annual fee of ₹2,999 plus 18% GST:

• GST: ₹2,999 × 18% = ₹539.82
• Total fee billed: ₹3,538.82

Because this fee arose only after the closure deadline had passed, Riya should ask for the full ₹3,538.82 to be reversed, plus any interest or late fee that was added on it, in addition to the ₹7,500 penalty. If the bank had instead closed the card on time, there would have been no fee at all.

If the bank argues there was an outstanding, check the date of the charge. A charge that posted before your request may be valid; a charge that posted only because of the bank's delay is not.

Common reasons closure gets stuck

If your card was closed but the closure has not reached your credit report, our guide on disputing a CIBIL report error explains the bureau process. If there is a leftover balance and you are not sure how much interest it may build, our credit card interest calculator shows the cost of leaving even a small amount unpaid.

Ready-to-copy complaint message

Use this for the grievance officer, and later for the RBI complaint.

Subject: Credit card closure not processed – request for closure and compensation under RBI directions

Dear Grievance Redressal Officer,

I requested closure of my credit card ending XXXX on [date] through [app / email / helpline], reference number [number]. My outstanding was nil on that date (statement attached).

As of today, [date], the card account has not been closed, which is beyond the seven working days allowed under RBI's directions on credit cards. Please:

1. Close the card account immediately and confirm in writing.
2. Pay compensation of ₹500 per calendar day of delay from [8th working day] until the date of closure.
3. Reverse any fee, GST, interest or late charge billed after my request ([amount]).
4. Refund any credit balance to my account [account number / IFSC].
5. Update the closure with all credit information companies within 30 days.

If I do not receive a resolution within 30 days, I will approach the RBI Ombudsman.

Regards, [Name], [registered mobile], [email]

What not to do

• Do not just stop using the card. An unused card is not a closed card, and fees can still post.
• Do not cut the card before confirmation. You may need it to verify identity or recover a credit balance.
• Do not ignore small residual dues. A ₹25 interest charge can block closure and can also be reported as overdue.
• Do not accept a retention offer if you do not want it. Say no clearly and ask for the closure reference.
• Do not let the bank convert closure into a "block". A blocked card can still have an open account on your credit report.
• Do not wait months to escalate. The Ombudsman has a 90-day filing window after the issuer's 30-day reply period.

After the card is closed

Download the closure letter or email and keep it for at least a few years. Check your credit report after 30 to 45 days to confirm the account shows as closed with a zero balance. Your credit utilisation will change because your total limit falls; our guide to the credit utilization ratio explains how to keep it comfortable.

If the card was blocked by the bank rather than closed by you, a different set of steps applies; see our guide on what to do when a credit card is blocked.

Key takeaways

• RBI rules require a credit card to be closed within 7 working days of your request once dues are clear.
• For every calendar day of delay beyond that, the issuer owes you ₹500, as long as nothing is outstanding.
• Pay every rupee of residual dues and cancel linked payments before you request closure.
• Fees billed only because of the bank's delay should be reversed with GST and interest.
• Closure must reach the credit bureaus within 30 days; any credit balance must be refunded to your bank account.
• Escalate to the grievance officer, then to the RBI Ombudsman at cms.rbi.org.in if the issuer does not resolve it within 30 days.