Ref RBI Circulars:
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https://www.rbi.org.in/commonperson/English/Scripts/Notification.aspx?Id=1574
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https://rbi.org.in/Scripts/NotificationUser.aspx?Id=3315&Mode=0
RBI says this.
Now, how we can use this for the benefits of consumers.
Basically, banks have the habit of giving a blanket reason of that the card application has been rejected because of Internal Policies of the bank. (I applied for Change of Address for an existing Credit Card and I received this response) But that reason can be considered as unclear and we can request for a more clear reason for rejection. Reasons like Age mismatch, Low Credit Score, too many cards issued recently, etc etc.
BUT NOT REJECTED BECAUSE INTERNAL POLICIES.
I am making this a habit now that for every rejection, I will not stay quiet. I will raise my voice. 1 hard credit enquiry has been made, I will fight for it. If Level 1 doesn't help, will raise to Level 2. (Contact emails can be found here -
this thread)
I am sure we all would have faced situations where immediately after applying they give rejection. (Sometimes even before doing vKYC or even asking income documents). What reason they give? Internal Policies. 🤦🏻♂️ With citing this circular in the support emails, we have better chances of moving the balance needle towards us again.
But, there is a Catch
In theory, it can be said that Banks have
advised to do this,
not mandated. So, the banker can argue that they are not required by law to state the reason. (That's why they still keep doing that, because they are not penalised for that). In that case, I would say keep pushing, maybe this particular agent didn't wanted to help, maybe next agent will help. If nothing, then go for OB, when all the other approaches are exhausted. Also, to be noted, RBI has used the term
main reason/reasons. Bank person can theoretically argue that Internal Policies is the main reason, but again. Take a day off, then reply again in hopes of some other agent who can be more helpful.
There is no harm in trying
With each of my email for rejection reason, I am also attaching some of the content for re-evaluation of my credit card application. Because end of the day, that's all that matters (I get the Card I applied for and spent my Enquiry on). (Reference details can be found here -
this thread)
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My experience:
- Rejected for SBI (applied through Sprint Portal) -> Sent Email ->
this comment.
- Rejected for StanC (This also online application) -> Sent Email -> Waiting for response.
Please share your experiences also, I will keep indexing them here. Eventually, if we can prepare some sort of template for this for the benefits of consumers, it will be awesome. 😍