Credit card use is growing rapidly in India.
According to Reserve Bank of India (RBI) data, the number of active credit cards in the country has crossed 120 million, while monthly credit card spending has risen above ₹2.02 lakh crore.
But not everyone uses their credit card regularly.
If you have an unused credit card lying around and want to close it, you can do so without necessarily visiting the bank branch. RBI rules give customers a simple way to request card closure.
There is also an important rule you should know: if the bank delays closing your card beyond the permitted time, you may be eligible for compensation.
Things to Do Before Closing Your Credit Card
Before requesting closure, make sure there are no outstanding dues on the card.
If you still have an unpaid balance, clear it first.
The closure request may not be completed until the outstanding amount is settled.
You should also use any unused reward points before closing the card, as you may lose access to them afterward.
Another important step is to cancel any automatic payments or subscriptions linked to the card.
Otherwise, a payment could fail after the card is closed.
How to Close Your Credit Card From Home
In many cases, you don’t need to visit a bank branch to close your credit card.
Depending on the facilities offered by your card issuer, you can submit a closure request through customer care, the bank’s mobile app, net banking or other available channels.
You may be asked to provide details such as your name, address and the last four digits of your card, along with other verification information.
Under RBI rules, the card issuer is required to close the credit card within 7 working days of receiving the request, provided there are no outstanding dues.
Once the card is officially closed, you should destroy the physical card. Cut it diagonally and make sure the magnetic stripe is damaged.
You Can Also Close the Card by Visiting the Bank
If you prefer the offline method, you can submit a written request to the bank.
You may need to visit the concerned branch and provide your identification documents.
Carry a valid ID, such as an Aadhaar card or voter ID, if required by the bank.
The bank will then process your card closure request after completing the necessary verification.
What Does the RBI Rule Say About Delays?
This is one of the most important points for credit card users.
According to RBI regulations, a credit card issuer must close the card within 7 working days after receiving the customer’s request, provided there are no pending dues.
If the issuer fails to close the card within this time, the eligible customer can receive compensation of ₹500 per day for the delay until the card is closed.
The card issuer must also report the closure to the relevant credit information companies within 30 days.
So, if you’ve requested closure and the bank keeps delaying it, don’t simply ignore the delay.
Keep a record of your request and check whether the card has actually been closed.
What Happens If You Don’t Use Your Card for a Long Time?
There’s another RBI-related rule credit card users should know.
If a credit card has not been used for more than one year, the issuer may initiate the process of closing it.
However, the issuer must first inform the customer.
If the cardholder does not respond within the specified 30-day period, the card may then be closed.
Therefore, if you have an old credit card that you no longer need, it may be better to review the account and formally close it rather than simply leaving it unused.
