Credit card refund not processed to bank account even after 2 weeks – What compensation can I claim under RBI guidelines?

[baibhab]

Hi everyone,

I’m looking for some guidance or shared experiences regarding a credit card refund issue and possible compensation under RBI rules.

Here’s the detailed situation:

• I made a credit card transaction in May 2025.
• The full payment for that month’s bill was made on time, including this transaction.
• In July 2025, the merchant issued a partial refund related to that transaction — ₹50,000.
• Since the bill was already settled, the refunded amount became a positive balance (credit) on my credit card account.
• I did not make any new purchases after that, so the entire ₹50,000 remained as a surplus.
• I then formally requested the card-issuing bank to refund the excess balance to my bank account.
• However, even after more than two weeks, the refund has not been processed.

As per RBI guidelines, especially under the Master Circular on Credit Card Operations, any credit balance must be refunded to the customer’s account within 3 working days from the date of request.

To make matters worse:

• I’ve already escalated this to the bank’s Nodal Officer.
• Still, there’s been no resolution or timeline given.
• Multiple follow-ups have been done, but they’ve only been giving templated or vague replies.

Given the significant amount involved (₹50,000) and the clear violation of RBI’s directive, I want to understand:

1. How much compensation can I reasonably demand or expect?

Is there a per-day penalty or interest rate the bank must pay for the delay, as per RBI or Banking Ombudsman guidelines?

2. What should be my next step?

I’m considering filing a complaint via:

• RBI’s Complaint Management System (CMS)
• Or approaching the Banking Ombudsman directly

Has anyone dealt with something similar? If yes, how did it go, and what kind of compensation (if any) did you receive?

Thanks in advance for your help!