A brief context of my case:
I hold 3 credit cards from Axis. I had placed a request to change Axis Airtel to Rupay variant, which got rejected due to max cards policy. When a card gets converted to another variant, both the variants show up as active for a few days, which increases your total card count by 1. Hence, they rejected my request with the reason "More than 3 cards can't be issued due to internal policy".