RBI seemingly cannot Interpret its OWN Guidelines (HDFC Cc Case)

[the fiasco]

Long Story Short,

Hdfc has mentioned in its MITC that cashback received against redemption of points will be adjusted in the following billing cycle (not the current)

HOWEVER

As per The RBI Master Direction Circular



What Hdfc is doing is in complete contradiction to the Guidelines set by the Reserve Bank of India. AFAIK, Icici and SBI adjust the Cashback within the Same statement.

I raised an RBI Complaint asking them ONE simple question :
' How can HDFC have a clause in their MITC that is powerful enough to AVOID a particular Guideline set by the Banking Regulator of this country, The Reserve Bank of India ?'

Here's the Response I have got from RBI.

 

[hender]

Long Story Short,

Hdfc has mentioned in its MITC that cashback received against redemption of points will be adjusted in the following billing cycle (not the current)

HOWEVER

As per The RBI Master Direction Circular

View attachment 95365

What Hdfc is doing is in complete contradiction to the Guidelines set by the Reserve Bank of India. AFAIK, Icici and SBI adjust the Cashback within the Same statement.

I raised an RBI Complaint asking them ONE simple question :
' How can HDFC have a clause in their MITC that is powerful enough to AVOID a particular Guideline set by the Banking Regulator of this country, The Reserve Bank of India ?'

Here's the Response I have got from RBI.

View attachment 95366

@SJM Your Notes BOSS ✍️

 

[the fiasco]

@SSV @Vasuki @Aniket @kuchbhi @Mr. Bean @quino @VISHESH_BANSAL @varun__goel_ @Pissant @doraemon @Abhishek012 @TechnoFino @vaibhav111 @Talkwithfino @BVC @cardy @Dr.Anand456 @vega @Bigde @plastikman @6ix9ine @karanssh @2025 @hender @Miss.Marple @DaDarkkNight @desiviru @Raavan @Half Human

 

[2025]

Long Story Short,

Hdfc has mentioned in its MITC that cashback received against redemption of points will be adjusted in the following billing cycle (not the current)

HOWEVER

As per The RBI Master Direction Circular

View attachment 95365

What Hdfc is doing is in complete contradiction to the Guidelines set by the Reserve Bank of India. AFAIK, Icici and SBI adjust the Cashback within the Same statement.

I raised an RBI Complaint asking them ONE simple question :
' How can HDFC have a clause in their MITC that is powerful enough to AVOID a particular Guideline set by the Banking Regulator of this country, The Reserve Bank of India ?'

Here's the Response I have got from RBI.

View attachment 95366

HDFC and RBI are not wrong. Your perspective was one-sided in nature. My point of view.

Point 1. "Credit amount arising out of 'refund/failed/reversed" gets adjusted ...as you rightly noted. (You are not questioning this, right?)

Point 2. "Similar transactions" Reward redemption is not a similar transaction.

Some reasons....
(a) Reward points accumulate in a different reward point account. Refunds, failed transactions, reversals, and cancelled transactions cannot accumulate elsewhere; they are always on an individual transaction basis and out of the direct control of the cardholder regarding when they get credited.

(b) The rewards points are usually not automatically credited to the HDFC CC account (unlike SBI cashback); you have to redeem them to convert them into cash (or vouchers or other things) and eventually credit them to the card account. So, somehow, you have control over it.

Btw, SBI following something does not necessitate others to adopt the same thing.

 

[Aniket]

Long Story Short,

Hdfc has mentioned in its MITC that cashback received against redemption of points will be adjusted in the following billing cycle (not the current)

HOWEVER

As per The RBI Master Direction Circular

View attachment 95365

What Hdfc is doing is in complete contradiction to the Guidelines set by the Reserve Bank of India. AFAIK, Icici and SBI adjust the Cashback within the Same statement.

I raised an RBI Complaint asking them ONE simple question :
' How can HDFC have a clause in their MITC that is powerful enough to AVOID a particular Guideline set by the Banking Regulator of this country, The Reserve Bank of India ?'

Here's the Response I have got from RBI.

View attachment 95366

As I repeatedly mention, RBI's BO & their officers are extremely incompetent, evident from their conduct itself, exception is always there. Yes, they don't know their owns sets of rules and regulations, these rules are made by some different departments, most of the times; Department of Regulation, they don't care to brush up on their sets of rules & regulations.

Not only that, they even lack basic diligence & inter personal skills of an ordinary man, IMO.

What you expect?👀

If you're really interested in taking this matter up, then I suggest to proceed with court on merit, but then judicial proceedings will become cumbersome & their interpretation and discretion no one knows, especially taking consideration of time & effort, it's not worth the hassle, but yes if you wish to take initiative, the go ahead.

P.S: Keep aside, whatever HDFC has mentioned, but in practical life, are they considering payment only in next cycle? Seems yes, from the screenshot attached, hence again proved of being at the stone age.

If it's getting credited instantly or by due date, even though it's getting accepted as payment for the next cycle only then it's wrong, otherwise it's very much ok, I don't have relationship with HDFC so don't know how thier redemption works.

If not then just ignore, there are tons of things, where they defeat the provision of laws, most of them don't consider refund/ reversal as the payments and don't adjust TAD & notify cardholder, if received before the due date, there are many instances like that, it's not the matter of a single bank or co., most of them do the same.

It's because of sheer lack of regulatory supervision and penalty & unmeritocratic selection/ appointment of such job title from concerned body; RBI...

 

[SJM]

cc @Talkwithfino
HDFC and RBI are not wrong. Your perspective was one-sided in nature. My point of view.

Point 1. "Credit amount arising out of 'refund/failed/reversed" gets adjusted ...as you rightly noted. (You are not questioning this, right?)

Point 2. "Similar transactions" Reward redemption is not a similar transaction.

Some reasons....
(a) Reward points accumulate in a different reward point account. Refunds, failed transactions, reversals, and cancelled transactions cannot accumulate elsewhere; they are always on an individual transaction basis and out of the direct control of the cardholder regarding when they get credited.

(b) The rewards points are usually not automatically credited to the HDFC CC account (unlike SBI cashback); you have to redeem them to convert them into cash (or vouchers or other things) and eventually credit them to the card account. So, somehow, you have control over it.

Btw, SBI following something does not necessitate others to adopt the same thing.

+1 - Totally agreed

 

[kiwi195]

RBI closed my complaint as non appealable after ICICI provided them false information 😆😆 I have now raised a complaint with ASCI against ICICI and will raise a complaint on NCH if required

 

[SJM]

@SJM Your Notes BOSS ✍️

Here's my notes 👇

2

Post in thread 'RBI seemingly cannot Interpret its OWN Guidelines (HDFC Cc Case)'

Yesterday at 7:47 PM

Long Story Short,

Hdfc has mentioned in its MITC that cashback received against redemption of points will be adjusted in the following billing cycle (not the current)

HOWEVER

As per The RBI Master Direction Circular

View attachment 95365

What Hdfc is doing is in complete contradiction to the Guidelines set by the Reserve Bank of India. AFAIK, Icici and SBI adjust the Cashback within the Same statement.

I raised an RBI Complaint asking them ONE simple question :
' How can HDFC have a clause in their MITC that is powerful enough to AVOID a particular Guideline set by the Banking...

• 2025

• 

 

[SJM]

RBI closed my complaint as non appealable after ICICI provided them false information 😆😆 I have now raised a complaint with ASCI against ICICI and will raise a complaint on NCH if required

What is the complaint? Please share the details.

 

[varun__goel_]

Long Story Short,

Hdfc has mentioned in its MITC that cashback received against redemption of points will be adjusted in the following billing cycle (not the current)

HOWEVER

As per The RBI Master Direction Circular

View attachment 95365

What Hdfc is doing is in complete contradiction to the Guidelines set by the Reserve Bank of India. AFAIK, Icici and SBI adjust the Cashback within the Same statement.

I raised an RBI Complaint asking them ONE simple question :
' How can HDFC have a clause in their MITC that is powerful enough to AVOID a particular Guideline set by the Banking Regulator of this country, The Reserve Bank of India ?'

Here's the Response I have got from RBI.

View attachment 95366

Simple answer:- refund/failed/reversed transaction is different from cashback redemption. They are not of similar nature.

 

[hender]

cc @Talkwithfino
HDFC and RBI are not wrong. Your perspective was one-sided in nature. My point of view.

Point 1. "Credit amount arising out of 'refund/failed/reversed" gets adjusted ...as you rightly noted. (You are not questioning this, right?)

Point 2. "Similar transactions" Reward redemption is not a similar transaction.

Some reasons....
(a) Reward points accumulate in a different reward point account. Refunds, failed transactions, reversals, and cancelled transactions cannot accumulate elsewhere; they are always on an individual transaction basis and out of the direct control of the cardholder regarding when they get credited.

(b) The rewards points are usually not automatically credited to the HDFC CC account (unlike SBI cashback); you have to redeem them to convert them into cash (or vouchers or other things) and eventually credit them to the card account. So, somehow, you have control over it.

Btw, SBI following something does not necessitate others to adopt the same thing.

+1 - Totally agreed

(Jolly LLB
Jolly LLM )
vs State

(Petition 171/22/04 )

 

[Aniket]

cc @Talkwithfino
HDFC and RBI are not wrong. Your perspective was one-sided in nature. My point of view.

Point 1. "Credit amount arising out of 'refund/failed/reversed" gets adjusted ...as you rightly noted. (You are not questioning this, right?)

Point 2. "Similar transactions" Reward redemption is not a similar transaction.

Some reasons....
(a) Reward points accumulate in a different reward point account. Refunds, failed transactions, reversals, and cancelled transactions cannot accumulate elsewhere; they are always on an individual transaction basis and out of the direct control of the cardholder regarding when they get credited.

(b) The rewards points are usually not automatically credited to the HDFC CC account (unlike SBI cashback); you have to redeem them to convert them into cash (or vouchers or other things) and eventually credit them to the card account. So, somehow, you have control over it.

Btw, SBI following something does not necessitate others to adopt the same thing.

Long Story Short,

Hdfc has mentioned in its MITC that cashback received against redemption of points will be adjusted in the following billing cycle (not the current)

 

[kiwi195]

What is the complaint? Please share the details.

ICICI bank offers a complementary credit card for college students first year onwards for its Campus power savings account holders. A friend of mine also received one this way. My branch denied the existence of such a scheme (despite being mentioned on the product page) and did not help me with the same. Raised an RBI complaint since I did not receive a satisfactory response from any team. Branch asked me to email, email asked me to contact branch. Twitter asked me to contact branch. PNO and headservicequality email did not respond at all. To the RBI complaint, they responded that I tried to apply for Alumni scheme and there is an age criteria of 23 for the same (it should be 21??). RBI closed my complaint as non maintanable

 

[aam.aadmi]

I frequently redeem my accumulated Millennia CC reward points for statement credit. Each time, the total statement dues are reduced, and BBPS allows me to only pay the remaining balance. On the one instance when I redeemed my reward points with zero statement dues, the amount got automatically transferred to my HDFC savings bank a/c

 

[2025]

View attachment 95368

@Aniket I think your point is why do the rewards redemption get adjusted in the next cycle if they are not considered as bill payment, right?

In my opinion, they are not exactly adjusted in the next cycle they actually get adjusted in the same cycle with change in liability amount. Not as a payment, but as a cash credit, arises due to redemption of points generated in previous billing cycle/ months. So, it reduces the liability of the bill need to be paid in the next cycle.

The words are poorly framed. Nothing else.

Btw, cash credit on a card account cannot be ignored even if they are not considered as direct payment (by, or on behalf of, the card holder), hence has to be adjusted during billing of that billing cycle (period). That is what exactly happening.

 

[SJM]

ICICI bank offers a complementary credit card for college students first year onwards for its Campus power savings account holders. A friend of mine also received one this way. My branch denied the existence of such a scheme (despite being mentioned on the product page) and did not help me with the same. Raised an RBI complaint since I did not receive a satisfactory response from any team. Branch asked me to email, email asked me to contact branch. Twitter asked me to contact branch. PNO and headservicequality email did not respond at all. To the RBI complaint, they responded that I tried to apply for Alumni scheme and there is an age criteria of 23 for the same (it should be 21??). RBI closed my complaint as non maintanable

Since you have already gone to RBIO and case closed there is not much to be done. When you say they denied the existence of such a product, do you have it in writing?

 

[Fintellect]

I have very limited trust in the RBI because of their incomptent work.

 

[Dr.Anand456Dr.Anand456 is verified member.]

@SSV @Vasuki @Aniket @kuchbhi @Mr. Bean @quino @VISHESH_BANSAL @varun__goel_ @Pissant @doraemon @Abhishek012 @TechnoFino @vaibhav111 @Talkwithfino @BVC @cardy @Dr.Anand456 @vega @Bigde @plastikman @6ix9ine @karanssh @2025 @hender @Miss.Marple @DaDarkkNight @desiviru @Raavan @Half Human

Hi, I hope by now you've received clarity on your query through the responses below.

I would just like to point out that before filing a complaint with the RBI, it’s essential to thoroughly read the terms and conditions of the HDFC credit card you’re using. These terms clearly outline how cashback or reward points will be credited or adjusted.

Also, the way cashback or rewards are processed largely depends on the type of credit card. Cashback cards generally have a simpler and faster adjustment mechanism, often within the same billing cycle. However, for cards that offer reward points, the redemption and adjustment process tends to be more complex and time-consuming.

It’s important to note that banks do retain certain discretionary powers when it comes to structuring card features, including reward redemptions and refunds. RBI does provide overarching guidelines, but it does not micro-manage every clause unless there's a serious breach.

Ultimately, each card operates under a unique set of terms and conditions determined by the issuing bank—not RBI—and that includes how refunds (like on returned or cancelled transactions) or rewards are credited. So, not every refund or reward credit will be transferred directly to your bank account or reflected instantly on your card statement.

 

[SJM]

Ultimately, each card operates under a unique set of terms and conditions determined by the issuing bank—not RBI—and that includes how refunds (like on returned or cancelled transactions) or rewards are credited. So, not every refund or reward credit will be transferred directly to your bank account or reflected instantly on your card statement.

DISAGREE. None of the rules set by a bank can override RBI guidelines. The rules have to be designed to be within the boundaries defined by RBI.

 

[Aniket]

As I repeatedly mention, RBI's BO & their officers are extremely incompetent, evident from their conduct itself, exception is always there. Yes, they don't know their owns sets of rules and regulations, these rules are made by some different departments, most of the times; Department of Regulation, they don't care to brush up on their sets of rules & regulations.

Not only that, they even lack basic diligence & inter personal skills of an ordinary man, IMO.

What you expect?👀

If you're really interested in taking this matter up, then I suggest to proceed with court on merit, but then judicial proceedings will become cumbersome & their interpretation and discretion no one knows, especially taking consideration of time & effort, it's not worth the hassle, but yes if you wish to take initiative, the go ahead.

P.S: Keep aside, whatever HDFC has mentioned, but in practical life, are they considering payment only in next cycle? Seems yes, from the screenshot attached, hence again proved of being at the stone age.

If it's getting credited instantly or by due date, even though it's getting accepted as payment for the next cycle only then it's wrong, otherwise it's very much ok, I don't have relationship with HDFC so don't know how thier redemption works.

If not then just ignore, there are tons of things, where they defeat the provision of laws, most of them don't consider refund/ reversal as the payments and don't adjust TAD & notify cardholder, if received before the due date, there are many instances like that, it's not the matter of a single bank or co., most of them do the same.

It's because of sheer lack of regulatory supervision and penalty & unmeritocratic selection/ appointment on such job title from concerned body; RBI...

Last & final: Are yaha jadatar banks ka algorithm designed/programmed hi nahi hain ki refunds, reversals, wagerah ko payments ke rup mein treat karne ka if bill already generate ho gaya hai toh bhaut sarein banks TAD adjust nahi karta na hi notify, even though due date se pehle hi credit kyu na gaya ho (refer other's threads on TF itself for your ready reference) against RBI rules, ussi tarah rewards redemption bill generation ke baad count nahi huwa, next cycle shift, that's all.

Rewards Pts get redeemed and converted/credited as cashback or something else, if any, it's as good as payments.

Lekin nahi, ab yaha excuse/ sahamati dena hai bank ka MITC ke name pe, other similar txn mein wo nahi aata hai uske name pe lol. 🤣