Hello TFCians,
As you are already aware, Axis Bank has issued notices to many Atlas credit card holders, requesting invoices for their spending on travel categories over the last few months. Axis Bank has suspended affected customers' Edge Reward accounts and asked them to submit these invoices within 30 days. Otherwise, they will cancel the credit card, citing commercial use (non-personal) of their credit cards.
Notice Copy (Found on TFC):
The problem lies in the fact that many affected customers have only spent a few thousand rupees on travel categories such as hotel and flight bookings, and yet they have received this notice. Some customers have even purchased gift vouchers worth a few thousand rupees from Intermiles and still received this notice. While I understand that Axis Bank is trying to filter out abusers from their customer list, the steps they are taking seem like pure harassment to genuine customers.
Imagine a scenario where a person went on a trip to Europe, spent a significant amount on flight, hotel bookings and other related expenses, and after a few months, the bank asks for invoices for all transactions. Is this a verification process for non-personal use of their card or harassment? Who has the free time to gather invoices and submit them to the bank?
In my opinion, affected genuine spenders should contact Axis Bank and request the reactivation of their Edge Reward account as soon as possible, explaining that all spends were for personal purposes only. If the bank persists with its demand, then the customer should file a complaint with the RBI banking ombudsman and claim compensation for mental harassment from the bank.
Axis Bank's terms and conditions on card cancellation:
"To ensure that the Credit Card is being used as per the regulatory guidelines, Terms and Conditions and applicable policies of the Bank, Bank shall have a right to run periodic checks on the Credit Card usage to identify whether there is excessive utilization of credit limit beyond the sanctioned limit in one statement cycle, unusual or excessive utilization at few select merchants, to make repayment of another credit card/loans, transfer funds to savings account, possible collusion with merchant and/or usage towards non-personal/ business related requirements, over-use/ misuse of features/ offers/ programs towards accumulation of undue reward points/ cash back / other benefits amongst others. In such a scenario Axis Bank may, at its sole discretion, exercise its right to cancel the concerned Credit Card and additional/add-on cards thereof and withhold/cancel the Cashback/reward points earned at customer level, without any notice to the Cardholder. Axis Bank may also enquire with you over phone or through any other means of formal communication and seek details, information, proofs, etc., about the Credit Card transactions, pattern of usage, etc. Non- satisfactory responses or no responses from the Cardholder may lead to blocking/closure of the Credit Card by Axis Bank."
So, now the question arises: on what grounds can you lodge a complaint against Axis Bank? Axis Bank has stated that they can request proofs, call customers for verification, and if customers fail to respond or submit proofs on time, the bank can cancel their credit card. Fair enough, but they have also stated that "If there is excessive utilization of credit limit beyond the sanctioned limit in one statement cycle, unusual or excessive utilization at few select merchants, to make repayment of another credit card/loans, transfer funds to savings account, possible collusion with merchant, and/or usage towards non-personal/ business-related requirements, overuse/misuse of features/offers/programs towards accumulation of undue reward points/ cashback / other benefits among others."
How can spending Rs. 2000 on Intermiles or Rs. 5000 on a hotel be considered as non-personal use? Why have people with such low utilization of their limit received such notices?
Once again, you need to explain the entire situation to the ombudsman. Axis Bank has every right to request proofs, but if someone has a credit limit of Rs. 5,00,000 and has only utilized a few thousand rupees, how can the bank consider that as business expenses? Isn't asking for invoices for all small transactions a time-consuming task for a customer?
I consider this to be pure harassment.
How to file a complaint with the RBI banking ombudsman (detail step by step guide): https://www.technofino.in/community...ank-on-the-rbi-banking-ombudsman-portal.3130/
As you are already aware, Axis Bank has issued notices to many Atlas credit card holders, requesting invoices for their spending on travel categories over the last few months. Axis Bank has suspended affected customers' Edge Reward accounts and asked them to submit these invoices within 30 days. Otherwise, they will cancel the credit card, citing commercial use (non-personal) of their credit cards.
Notice Copy (Found on TFC):
The problem lies in the fact that many affected customers have only spent a few thousand rupees on travel categories such as hotel and flight bookings, and yet they have received this notice. Some customers have even purchased gift vouchers worth a few thousand rupees from Intermiles and still received this notice. While I understand that Axis Bank is trying to filter out abusers from their customer list, the steps they are taking seem like pure harassment to genuine customers.
Imagine a scenario where a person went on a trip to Europe, spent a significant amount on flight, hotel bookings and other related expenses, and after a few months, the bank asks for invoices for all transactions. Is this a verification process for non-personal use of their card or harassment? Who has the free time to gather invoices and submit them to the bank?
In my opinion, affected genuine spenders should contact Axis Bank and request the reactivation of their Edge Reward account as soon as possible, explaining that all spends were for personal purposes only. If the bank persists with its demand, then the customer should file a complaint with the RBI banking ombudsman and claim compensation for mental harassment from the bank.
Axis Bank's terms and conditions on card cancellation:
"To ensure that the Credit Card is being used as per the regulatory guidelines, Terms and Conditions and applicable policies of the Bank, Bank shall have a right to run periodic checks on the Credit Card usage to identify whether there is excessive utilization of credit limit beyond the sanctioned limit in one statement cycle, unusual or excessive utilization at few select merchants, to make repayment of another credit card/loans, transfer funds to savings account, possible collusion with merchant and/or usage towards non-personal/ business related requirements, over-use/ misuse of features/ offers/ programs towards accumulation of undue reward points/ cash back / other benefits amongst others. In such a scenario Axis Bank may, at its sole discretion, exercise its right to cancel the concerned Credit Card and additional/add-on cards thereof and withhold/cancel the Cashback/reward points earned at customer level, without any notice to the Cardholder. Axis Bank may also enquire with you over phone or through any other means of formal communication and seek details, information, proofs, etc., about the Credit Card transactions, pattern of usage, etc. Non- satisfactory responses or no responses from the Cardholder may lead to blocking/closure of the Credit Card by Axis Bank."
So, now the question arises: on what grounds can you lodge a complaint against Axis Bank? Axis Bank has stated that they can request proofs, call customers for verification, and if customers fail to respond or submit proofs on time, the bank can cancel their credit card. Fair enough, but they have also stated that "If there is excessive utilization of credit limit beyond the sanctioned limit in one statement cycle, unusual or excessive utilization at few select merchants, to make repayment of another credit card/loans, transfer funds to savings account, possible collusion with merchant, and/or usage towards non-personal/ business-related requirements, overuse/misuse of features/offers/programs towards accumulation of undue reward points/ cashback / other benefits among others."
How can spending Rs. 2000 on Intermiles or Rs. 5000 on a hotel be considered as non-personal use? Why have people with such low utilization of their limit received such notices?
Once again, you need to explain the entire situation to the ombudsman. Axis Bank has every right to request proofs, but if someone has a credit limit of Rs. 5,00,000 and has only utilized a few thousand rupees, how can the bank consider that as business expenses? Isn't asking for invoices for all small transactions a time-consuming task for a customer?
I consider this to be pure harassment.
How to file a complaint with the RBI banking ombudsman (detail step by step guide): https://www.technofino.in/community...ank-on-the-rbi-banking-ombudsman-portal.3130/
less headache
