Help - SBI charged me 69k on a cancelled Flipkart order & now trying to blame me

[sunilh]

I had placed a laptop order on Flipkart for approx. 64k on 07 May 2025, During delivery (09 may) time as old laptop exchange wasn't accepted by the agent I cancelled the order as I had got additional 10k discount for exchange along with the laptop exchange amount, later on the same day (09 may) flipkart refunded the entire amount credited to my SBI Cashback Card which is also in mentined in my may statement. Despite this, SBI wrongly converted that cancelled transaction into a 3 month EMI.

When I complained by email, SBI first denied receiving any refund (which was false, since it was already shown in their own statement) and asked me to send the proof of refund. Even after I sent Flipkart's official confirmation with refund reference numbers, SBI did not reverse the charges. Instead, they closed tickets with irrelevant responses. Out of fear of late fees and credit score damage, I was forced to pay all three EMIs.

On 26th August I complained to the RBI Ombudsman and just after 2 days an SBI Card Representative who's handling the Case called me but instead of addressing the EMI issue she tried to shift the blame. She said my bills looked "less" because the refund created an excess balance, but in reality SBI just used my refund to cover their false EMI charges. She also claimed the EMI wasn't placed by SBI but by me with Flipkart, so it was my responsibility to cancel it with Flipkart but Flipkart had already refunded the full amount within 3 days, so there was nothing left to cancel, the EMI was wrongly created later by SBI itself. She kept repeating "sir, you paid less because of the excess," which is misleading because the only reason my bill looked less was that my refund was wrongly adjusted, I still ended up paying all 3 EMIs even after the order was canceled and refunded. Basically, instead of accepting fault, SBI is trying to misguide me and shift blame onto me and Flipkart.

Honestly, it felt like she had prepared a script just to confuse me and shift blame, She kept asking dates and mixing things up to confuse me, and I told her I wasn't able to understand the the way she was saying it.

She ended the call saying she'd explain again later but never called back. I even have the call recording.

Now I'm worried SBI may tell RBI "we explained to customer, not our fault" and try to close my case without fixing it.

 

[typhoon]

Raise issue to RBI once again they will escalate it. If order is refunded then EMI gets auto cancelled, as it's all system.

 

[Tamal]

It is compulsory to manually cancel EMI transaction with SBI by calling or Emailing after you refused the delivery/merchant cancel the order and refund received accordingly.

 

[Tamal]

Raise issue to RBI once again they will escalate it. If order is refunded then EMI gets auto cancelled, as it's all system.

Nowadays its manual cancel with most of the bank

 

[sunilh]

It is compulsory to manually cancel EMI transaction with SBI by calling or Emailing after you refused the delivery/merchant cancel the order and refund received accordingly.

But now they are not even agreeing for a chargeback. It's been more than a month since I started following up with SBI, and they are trying to shift blame and avoid taking responsibility, which started from my first email to them , They said refund was not at all received and asked me to share proof of merchant refund, later I contacted flipkart and they sent an official refund details which I sent it to sbi but SBI card didn't even reply and closed the complaint and now after rbi ombudsman complaint they say since I received refund the excess amount was adjusted to pay my outstanding ( which also include the emi and other transaction which I done ) , there was excess amount because all my refund money was credited to my card which created a negative balance, and this credit was automatically used to pay my next bills including that wrongful EMI.

 

[Strange]

But now they are not even agreeing for a chargeback. It's been more than a month since I started following up with SBI, and they are trying to shift blame and avoid taking responsibility, which started from my first email to them , They said refund was not at all received and asked me to share proof of merchant refund, later I contacted flipkart and they sent an official refund details which I sent it to sbi but SBI card didn't even reply and closed the complaint and now after rbi ombudsman complaint they say since I received refund the excess amount was adjusted to pay my outstanding ( which also include the emi and other transaction which I done ) , there was excess amount because all my refund money was credited to my card which created a negative balance, and this credit was automatically used to pay my next bills including that wrongful EMI.

Just ask them to refund the extra amount which you have paid which is Interest rate, GST on Interest rate and processing fee with GST and it's your mistake as you didn't call them to cancel the EMI after the getting the refund.

You can also for the compensation.

 

[Avatar Aang]

It is compulsory to manually cancel EMI transaction with SBI by calling or Emailing after you refused the delivery/merchant cancel the order and refund received accordingly.

Doesn't make any sense to me. When I receive a refund, the transaction becomes null and void. Why do I need to cancel the EMI.
OP should demand 50K compensation from SBI Cards.

 

[Rcbian]

I think the title is misleading
and you should update it accordingly

Sbi card haven't charged you 69k for a product you didn't get.

You placed and emi order on Flipkart > sbi process the transaction which is later converted to emi automatically since you chose emi option while buying > emi created by sbi.

Now your order was returned and full refund was issued to sbi card cc. That does not nullify the emi automatically this has been the standard practice. If your refund was credited before emi creation and your account balance was zero it might have been auto cancelled.
But generally

You need to manually cancel emi

Sbi didn't overcharge you 69K rupees.

 

[imdjay]

I think the title is misleading
and you should update it accordingly

Sbi card haven't charged you 69k for a product you didn't get.

You placed and emi order on Flipkart > sbi process the transaction which is later converted to emi automatically since you chose emi option while buying > emi created by sbi.

Now your order was returned and full refund was issued to sbi card cc. That does not nullify the emi automatically this has been the standard practice. If your refund was credited before emi creation and your account balance was zero it might have been auto cancelled.
But generally

You need to manually cancel emi

Sbi didn't overcharge you 69K rupees.

SBI card rule is- if you get the full amount as a refund without any difference, the EMI is cancelled automatically; else you will have to do it manually.

 

[desiviru]

Just tell me one thing. Did you ordered with EMI at time of order. If yes then they are right.

If it was just a simple order with all amount paid and refunded then you can complain. Else it was your duty that after getting refund you had to either tell Flipkart or call SBI to cancel those EMIs.

Even RBI won't be able to help you because here I am sensing you were not aware of how things work and assumed that after order cancellation and full refund your EMI became void which doesn't happens.

Even for first time while using HDFC somehow Amazon failed to deliver my EMI order and cancelled. I called HDFC and told them refund has came and cancel the EMI which they did. Statement genration was 20 days away so no problem occured.

As I always says, people do use CC but they never care to become themselves aware of actual rules and their duties when they do something.

Edit: P.S: I replied reading first post only and found out that few people already replied correctly to you. @sunilh Unfortunately you didn't made yourself aware about the game and you assumed things.

 

[desiviru]

SBI cards rules is- if you get full amount as refund without any difference, the EMI is cancelled automatically else you have to do it manually.

No such rule written in MITC. If refund is coming after txn settlement on Day 3 then you need to cancel it out manually always. Such txns don't get cancelled same day and after settlement it is your duty to cancel EMI txn.

Rule Says: If a full refund of transaction on card happens before EMI booking, then auto cancellation will not apply. In such cases customer needs to call at the helpline numbers mentioned below or email SBICPSL for any queries.

Here it may have happened that OP refund came before txn was converted to EMI ant it never auto-cancel the EMI. It will generate later.

Bank will prove OP carelessness and not reading/understanding rules.

 

[imdjay]

No such rule written in MITC. If refund is coming after txn settlement on Day 3 then you need to cancel it out manually always. Such txns don't get cancelled same day and after settlement it is your duty to cancel EMI txn.

Rule Says: If a full refund of transaction on card happens before EMI booking, then auto cancellation will not apply. In such cases customer needs to call at the helpline numbers mentioned below or email SBICPSL for any queries.

Here it may have happened that OP refund came before txn was converted to EMI ant it never auto-cancel the EMI. It will generate later.

Bank will prove OP carelessness and not reading/understanding rules.

I am quoting what I was told by one of their representatives on the call. But as we know, they lack proper knowledge, you might be right.

 

[sunilh]

I think the title is misleading
and you should update it accordingly

Sbi card haven't charged you 69k for a product you didn't get.

You placed and emi order on Flipkart > sbi process the transaction which is later converted to emi automatically since you chose emi option while buying > emi created by sbi.

Now your order was returned and full refund was issued to sbi card cc. That does not nullify the emi automatically this has been the standard practice. If your refund was credited before emi creation and your account balance was zero it might have been auto cancelled.
But generally

You need to manually cancel emi

Sbi didn't overcharge you 69K rupees.

I get that manual EMI cancellation is required now . But my issue is with the way SBI handled my case.
After the RBI Ombudsman complaint, they changed their story—now they say “since you got your refund, the excess amount got adjusted to your outstanding, including that EMI and other debits.” But this “excess” was only my own refunded money and other was the excess credit from the previous month as I made extra payment it was carried forward and was used to pay off EMI.

 

[sunilh]

Just tell me one thing. Did you ordered with EMI at time of order. If yes then they are right.

If it was just a simple order with all amount paid and refunded then you can complain. Else it was your duty that after getting refund you had to either tell Flipkart or call SBI to cancel those EMIs.

Even RBI won't be able to help you because here I am sensing you were not aware of how things work and assumed that after order cancellation and full refund your EMI became void which doesn't happens.

Even for first time while using HDFC somehow Amazon failed to deliver my EMI order and cancelled. I called HDFC and told them refund has came and cancel the EMI which they did. Statement genration was 20 days away so no problem occured.

As I always says, people do use CC but they never care to become themselves aware of actual rules and their duties when they do something.

Edit: P.S: I replied reading first post only and found out that few people already replied correctly to you. @sunilh Unfortunately you didn't made yourself aware about the game and you assumed things.

Yeah, I did select EMI at the time of order, not disagreeing with that now and now my whole complaint is about how SBI handling,
after ombudsman complaint now say “everything is now adjusted and settled, we don’t owe you anything, acting like the case is solved.

But my own refund and excess balance from pervious billing cycle ( I made excess payment ) to pay off a EMI. How come they can even claim that Excess amount was used to pay emi so I paid less during that bill ( even my other transaction during that first emi month was less ) so everything is settled and they say they don't owe me anything now. Just wish they told the whole thing straight on day one that I didn't request for cancellation and closed the case by cancelling the emi and with a charge back of the EMI which was already billed .

Before ombudsman complaint I gave a final try on august 15th I mailed them and said that my bill due date nearing ( 23rd aug ) my problem isn't resolved. My situation was - now I have to pay 36k ( billed amount ) which included 3 rd month emi (22k) and my other actual purchases , I had even informed in that final mail I'll exclate to RBI OMBUDSMAN if they didn't resolve , but I didn't got any reply from them after that , on 22 nd ( one day before final due date ) got a system generated email saying my complaint was resolved and closed , I was very happy when I received that mail but when I checked sbi app everything was the same just to avoid late payment I paid the total bill amount and then escalated it to RBI Ombudsman.

 

[desiviru]

Yeah, I did select EMI at the time of order, not disagreeing with that now and now my whole complaint is about how SBI handling,
after ombudsman complaint now say “everything is now adjusted and settled, we don’t owe you anything, acting like the case is solved.

But my own refund and excess balance from pervious billing cycle ( I made excess payment ) to pay off a EMI. How come they can even claim that Excess amount was used to pay emi so I paid less during that bill ( even my other transaction during that first emi month was less ) so everything is settled and they say they don't owe me anything now. Just wish they told the whole thing straight on day one that I didn't request for cancellation and closed the case by cancelling the emi and with a charge back of the EMI which was already billed .

Before ombudsman complaint I gave a final try on august 15th I mailed them and said that my bill due date nearing ( 23rd aug ) my problem isn't resolved. My situation was - now I have to pay 36k ( billed amount ) which included 3 rd month emi (22k) and my other actual purchases , I had even informed in that final mail I'll exclate to RBI OMBUDSMAN if they didn't resolve , but I didn't got any reply from them after that , on 22 nd ( one day before final due date ) got a system generated email saying my complaint was resolved and closed , I was very happy when I received that mail but when I checked sbi app everything was the same just to avoid late payment I paid the total bill amount and then escalated it to RBI Ombudsman.

Bro, in life, we have to owe up to our unawareness and pay for it. Just accept the truth and move on. Nothing much can be done.

If you can put whole statement and what they charged you, atleast I can give you whether you charged rightly or not and I know they haven't charged you outside of terms.

Whole my life I have seen people becoming innocent and act like as if they are never at fault.

Sharing just a general thing (reply below not for you):

My father retired from SBI and people used to come to them for forgiving or reversals just because they couldn't udnerstand or read. Bank is not at fault if you don't have enough understanding that using a product without knowing much about it can have consequences and when rightly charge people, they cry like it's bank duty to explain them everything.

Some people open account and forgot to maintain AMB and then abuse CC to bank as if it is bank's fault they don't have 1000-10000 to keep in bank. Who the hell asked you to open account if you are poor enough not to keep balance? These people are load on society and try to live off on other's rights.

Why bank explain you everything? Are you paying them for it? We went to school, colleges, uni and we paid them to learn. Nothing is free in life. It is not a bank's person duty to waste his time explaining every bit to every customer. That way their own important work will go away.

But they always ask you to read TnC and unfortunately 99% Indians think TnC pages are crap and they already know everything about it.

When you don't want to read about a product or understand about it, why blame others for own shortcomings?

Many people here comment and act like as if they are above authority and rules should be made according to them and every department should work for these cheap mentality people benefit. Kya kare, yeh becharey maa baap ke paise pe jeene wale log hai aur inko aise hi dusro ko loot ke jeena hai.

 

[Rcbian]

Explain how much money sbi should return you and why ?
I think you are still confused or the data given here is insufficient.
Since you got full refund of 69k, only amount sbi charged you must be the processing fees interest and gst on intrest. Can't skip that

 

[sunilh]

Explain how much money sbi should return you and why ?
I think you are still confused or the data given here is insufficient.
Since you got full refund of 69k, only amount sbi charged you must be the processing fees interest and gst on intrest. Can't skip that

I made an EMI purchase on 07 May 2025 (amount debited from SBI card).

Got a full refund credited back on 09 May 2025 from Flipkart (so technically, that transaction is nill).

On the same day, after the refund was credited, SBI still converted the transaction to EMI. ( I didn’t cancel the EMI after the refund was issued - people here said that’s my mistake and I agree. )

But then, all three months' EMI was billed as usual.

Now SBI is refusing to do a chargeback, telling me that the amount in emi was “adjusted” using my excess balance ( my excess balance was the extra payment I made surving pervious billing cycle ) and refund. My point is, how can they say it’s settled by just adjusting, when that refund was only the credit for my cancelled purchase from Flipkart.
To say 64k debited,
64k credited
( For this transaction It makes zero here - Sbi nor me doesn't have any excess credit here )
Emi wasn't cancelled ( I'll agree my mistake )
All three months emi was billed for next three months
SBi said they used my credits and refunds to adjust emi ( there's no other transaction or excess refund from sbi to adjust emi for all three months )

 

[desiviru]

I made an EMI purchase on 07 May 2025 (amount debited from SBI card).

Got a full refund credited back on 09 May 2025 from Flipkart (so technically, that transaction is nill).

On the same day, after the refund was credited, SBI still converted the transaction to EMI. ( I didn’t cancel the EMI after the refund was issued - people here said that’s my mistake and I agree. )

But then, all three months' EMI was billed as usual.

Now SBI is refusing to do a chargeback, telling me that the amount in emi was “adjusted” using my excess balance ( my excess balance was the extra payment I made surving pervious billing cycle ) and refund. My point is, how can they say it’s settled by just adjusting, when that refund was only the credit for my cancelled purchase from Flipkart.
To say 64k debited,
64k credited
( For this transaction It makes zero here - Sbi nor me doesn't have any excess credit here )
Emi wasn't cancelled ( I'll agree my mistake )
All three months emi was billed for next three months
SBi said they used my credits and refunds to adjust emi ( there's no other transaction or excess refund from sbi to adjust emi for all three months )

You are missing point here.

When you go for EMI, the same amount of money is credited to your credit card by merchant.

Like if you have Rs.3L card limit. You took 25K product on EMI. The merchant will give you a credit of 25K. Now EMI will be billed and deducted per month in statement. So it is like a debit entry and a credit entry which keeps your credit limit same. Now this refund of your money created double refunds. 1 of main refund for full amount and also merchant refund for EMI.

That may have created credit balance and SBI kept deducting from that credit balance.

Your actual loss is interest on that amount which you may have to pay in third statement because other two would have completely settled from credit balance.

You have to take that loss now. 🙁

Banks never create EMI. The bank EMI is different where you buy product with full amount and then askbank to convert it to EMI. That time bank credits full amount from its end.

EMI is from merchant end. Merchant pays whole amount to bank instantly and then take that back with interest by creating debit entry every month.