Module: | KYC, NPAs, Advances & Investment Valuations
Q235: Which of the following statements correctly describe the financial penalties a card-issuer must pay to a customer for non-compliance with RBI Directions?
1. In case of an unsolicited card being activated and billed without consent, the issuer must pay a penalty amounting to twice the value of the charges reversed.
2. If a request for closure of a credit card is not completed within seven working days (subject to no dues), the issuer must pay a penalty of ₹500 per calendar day of delay.
Which of the statements given above is/are correct?
2. If a request for closure of a credit card is not completed within seven working days (subject to no dues), the issuer must pay a penalty of ₹500 per calendar day of delay.
Which of the statements given above is/are correct?
✅ Correct Answer: C
The correct answer is C. Both statements are correct.
Statement 1 is correct: The RBI strictly prohibits the issuance of unsolicited credit cards.
If an unsolicited card is activated and billed without the customer's explicit consent, the issuer must reverse the charges and pay a mandatory penalty amounting to twice the value of the charges reversed.
Statement 2 is correct: When a customer submits a request for the closure of a credit card, the issuer must complete the process within seven working days, provided all dues are cleared.
If the issuer fails to meet this deadline, they are liable to pay a penalty of ₹500 per calendar day of delay directly to the customer's account.
Statement 1 is correct: The RBI strictly prohibits the issuance of unsolicited credit cards.
If an unsolicited card is activated and billed without the customer's explicit consent, the issuer must reverse the charges and pay a mandatory penalty amounting to twice the value of the charges reversed.
Statement 2 is correct: When a customer submits a request for the closure of a credit card, the issuer must complete the process within seven working days, provided all dues are cleared.
If the issuer fails to meet this deadline, they are liable to pay a penalty of ₹500 per calendar day of delay directly to the customer's account.