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They told me there was an internal fight. My proofs and logical arguments, particularly the email attachment of 17th January (eligibility of utilities), contributed a lot to winning on behalf of other genuine users and for those who have a sense within the banks.
Hence, the decision-making authority accepts the mistake and will credit the cashback, possibly in a few days in April, due to an accounting problem. The maximum deadline is 30 April. They will follow up with an email with the promise in written form to make my case smother for RBI if those "so-called" higher authorities backtrack again. Cheers!