HDFC Bank Making Its Own Rules? Going Beyond RBI's Credit Card Guidelines

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It appears that HDFC Bank is setting its own rules, possibly even overstepping the clear directions laid out by the Reserve Bank of India (RBI) in its 2022 Master Direction on credit cards.

A TechnoFino Community member recently pointed out that HDFC Bank explicitly states in its credit card terms and conditions that it “reserves the right to cancel the credit card in case the card remains inactive and is not used for effecting any transaction for a continuous period of 6 (six) months.”



Now here’s the issue: according to the RBI’s "Master Direction – Credit Card and Debit Card – Issuance and Conduct Directions, 2022", the regulator clearly mandates that if a credit card remain inactive for a continuous period of 12 months then the bank can initiate closure, but before that, the bank is required to notify the customer via SMS or email, giving them a 30-day window to respond or make a transaction to keep the card active. Only after this notice period, and a continued lack of activity or response, can the bank proceed with cancellation.



So the question arises:
How is HDFC Bank enforcing cancellation at just 6 months of inactivity when RBI guidelines clearly allow customers 12 months?

More importantly, when all other banks are adhering to the RBI-mandated 12-month rule, how is HDFC justified in enforcing stricter terms? While banks do have the liberty to define certain operational policies, they are not permitted to override explicit regulatory directives.

This situation raises concerns about transparency and regulatory compliance. Customers deserve to know whether their card usage is being governed by RBI's rules or the bank’s internal interpretations - and whether such actions are even permitted under the law.

We hope HDFC Bank will clarify its stance or align its policy with RBI’s directions, like other responsible issuers.

 

[helloworld]

but its there even before rbi guidelines.

I believe this comes under hdfc rule that inactive 6 months, notify and failed to perform transaction .. close the card.

RBI said for 12 months, nothing there to prevent others to implement something before. Its like if no rule already exist in bank then 12 months of inactivity, if any rule exist 12 months or that whichever earlier.

same hdfc has the rule if no spends in a year then reward points will be 0.. this is also before rbi rule.

 

[Yugi]

I think if someone notifies them of RBI rule, they should fix it.

 

[waqar1234]

but its there even before rbi guidelines.

I believe this comes under hdfc rule that inactive 6 months, notify and failed to perform transaction .. close the card.

RBI said for 12 months, nothing there to prevent others to implement something before. Its like if no rule already exist in bank then 12 months of inactivity, if any rule exist 12 months or that whichever earlier.

same hdfc has the rule if no spends in a year then reward points will be 0.. this is also before rbi rule

It appears that HDFC Bank is setting its own rules, possibly even overstepping the clear directions laid out by the Reserve Bank of India (RBI) in its 2022 Master Direction on credit cards.

A TechnoFino Community member recently pointed out that HDFC Bank explicitly states in its credit card terms and conditions that it “reserves the right to cancel the credit card in case the card remains inactive and is not used for effecting any transaction for a continuous period of 6 (six) months.”

View attachment 101264

Now here’s the issue: according to the RBI’s "Master Direction – Credit Card and Debit Card – Issuance and Conduct Directions, 2022", the regulator clearly mandates that if a credit card remain inactive for a continuous period of 12 months then the bank can initiate closure, but before that, the bank is required to notify the customer via SMS or email, giving them a 30-day window to respond or make a transaction to keep the card active. Only after this notice period, and a continued lack of activity or response, can the bank proceed with cancellation.

View attachment 101263

So the question arises:
How is HDFC Bank enforcing cancellation at just 6 months of inactivity when RBI guidelines clearly allow customers 12 months?

More importantly, when all other banks are adhering to the RBI-mandated 12-month rule, how is HDFC justified in enforcing stricter terms? While banks do have the liberty to define certain operational policies, they are not permitted to override explicit regulatory directives.

This situation raises concerns about transparency and regulatory compliance. Customers deserve to know whether their card usage is being governed by RBI's rules or the bank’s internal interpretations - and whether such actions are even permitted under the law.

We hope HDFC Bank will clarify its stance or align its policy with RBI’s directions, like other responsible issuers.

RBI has become a joker, RBI has one more rule that if a credit card is not activated within 30 days then it will be automatically closed. But this rule does not apply in Axis Bank, they send their cards pre-activated and also send a joining fee along with it, such card does not get closed even after the completion of 30 days If someone wants to close it, the bank says first pay the joining fee, then the card will be closed

 

[helloworld]

RBI has become a joker, RBI has one more rule that if a credit card is not activated within 30 days then it will be automatically closed. But this rule does not apply in Axis Bank, they send their cards pre-activated and also send a joining fee along with it, such card does not get closed even after the completion of 30 days If someone wants to close it, the bank says first pay the joining fee, then the card will be closed

u can always complain, no need to pay without usage. it works for all banks.