Bank delays your credit card closure, credit report correction or property documents? You are eligible for compensation

Banks and financial institutions are required to complete several customer-service requests within timelines prescribed by the Reserve Bank of India (RBI). If a bank fails to meet these deadlines, customers may be entitled to compensation for every day of delay, depending on the applicable RBI rules.

These compensation provisions cover a range of services, including credit card closure, failed digital transactions, return of property documents after loan repayment and correction of credit-report inaccuracies.

The compensation can range from ₹100 per day to ₹5,000 per day in certain cases.

RBI's framework for customer compensation is largely deadline-driven. It specifies a turnaround time (TAT) for a particular service and, if the bank exceeds that period, compensation may become payable under the relevant rules.

1. Failed digital payments

Customers may be eligible for compensation when a digital transaction or ATM transaction fails but their account is debited.

For certain failed transactions, including some UPI, ATM, and card transactions, banks are required to resolve the issue within the applicable RBI-prescribed turnaround time. Where compensation is applicable, the bank must generally provide ₹100 for each day of delay beyond the prescribed timeline, without requiring the customer to separately claim it.