Axis Bank May Issue Legal Notices for Unsettled Negative Reward Points Balances

[anonymuos]

This should become a landmark case and RBI should absolutely rule in favor of the end user, not in favor of the bank. In fact, Axis Bank should be imposed with a heavy fine and severe bans for doing this to customers. Also once some strict rule is made by RBI after this, maybe SBI Cards can be penalized as well for taking back reward points given "accidentally" on instant discounts. At the heart of the issue is rewards given "mistakenly" for which under no circumstances should the customer be punished after so many months/years. Do the banks not have any responsibility for screwups? Think of even 1 person who redeemed the reward points not knowing they were accidentally given and 2 years later, they are being asked to repay higher amounts?

Axis bank which cannot fix their loopholes, is capable of exactly determining who abused the loophole and who genuinely did spends but is being asked to repay the amount after years?

RBI is becoming weak and spineless against banks. They should be intensifying their crackdowns and punishments on banks, instead they are getting softer. There aren't enough harsh fines and punishments now-a-days for some the extreme rule violations that big greedy banks get away with.

 

[bargainHunter]

Guys, don't lose sight of who the enemy is in form of this large corporation who frequently mentally harass small customers for multiple things.

For those blaming the users, remember that it could be them for even genuine uses after many years because the bank posr facto decided so. Between David and Goliath, don't root for the wrong party and strengthen them for such future mishaps for potentially genuine cases. It was their screw up, they need to own it and not pass the buck.

Else, if reward points have value, please give that option upfront to users and let them encash. Also, bank should then credit cash equivalent for all expired rewards across users if this is the approach after years!

 

[2025]

I know I am nobody.

Though I loved the argument presented by @TechnoFino

But, in this case, my view is different.

In my opinion, Axis has a fair point, too. The money is not coming from their own pocket.

Those exploited Axis on the described route are not saints, either. If we can blame corporates for using the loopholes of governments, PSUs, etc., then why declare these highly educated exploiters innocent? Why this hypocrisy? We should always stand on the right side of justice. And the right side is definitely not the side the OP took in this case.

By that logic, no Minister, Babus, Malliya, Mdiis, will ever get any punishment because all of them have just exploited technical misgovernance, one way or the other.

I think the best solution at the current stage is settlement. The affected person should try to negotiate a favourable settlement and move on. I understand some will be at the denial stage as if they didn't know this.

Although Axis is directly responsible for the technical glitch, it is still doing the right thing (at the wrong time) to ask the concerned (ex)customer to pay for the services they availed but haven't paid for.

Even if I had benefited, I would still have said the same thing. I truly understand what is right and what is wrong. I won't try to hide behind some t&c to prove myself right when I know I did something wrong.

Dear exploiters, accept your mistake and move on. At most, try for a settlement.

(Am I alone?)

 

[SamPtnk]

I know someone who got 38.6L worth of free points via this and cancel card trick
Redeemed and closed the cards .
Got NOC , discarded the no n email and finally closed Axis Bank Account .
Also he permanently shifted to Goa

 

[ccdc]

Come on, man… move on from this. Axis Bank already reversed all the reward points credited for card replacements long ago. They are not going to send a legal notice for that. And if they do, I’ll be happy to fight Axis! 🙂

If they reversed all the "wrongful gains" points from your account and you currently don't have any negative points balance...card account closed or active....then I think it's fine you paid for the wrongful gains...but if not then...I think they should serve you...

 

[TechnoFinoTechnoFino is verified member.]

Apne ko kya, will just wait and watch the saga unfold. But this thread and justification is epic. And comparing it to prosecution of Jews under Nazi. Hilarious.

Entertainment Entertainment Entertainment.

This thread is not justifying customers who misused the system. It is questioning the incompetent IT infrastructure of Axis Bank, which can't even handle a simple refund and reward points reversal task. Also, why did they take two years to fix the issue?

 

[TechnoFinoTechnoFino is verified member.]

I know I am nobody.

Though I loved the argument presented by @TechnoFino

But, in this case my view is different.

My personal opinion is Axis has a fair point too. The money is not coming from their own pocket.

Those exploited Axis on the described route are not saint either. If we can blame corporates for using the loopholes of governments, PSUs, etc. then why declaring these highly educated exploiters as innocent? Why this hypocrisy? We should always stand on the right side of justice. And the right side is definitely not the side OP took in this case.

No Minister, Babus, Mall..ya, Mdiis, will ever get any punishment by that logic. Because all of them have just exploited the technical misgovernance one way or the other.

I think best solution at current stage is settlement. Affected person should try to negotiate to get a favourable settlement and move on. I understand some will be at denial stage as if they didn't know this.

Axis even though directly responsible for the technical glitch still in my view doing right thing (in wrong time) to ask the concerned (ex)customer to pay for the services they availed but haven't paid for.

Even if I would have benefited, I would still have said same thing. Because, I truly understand what is right and what is wrong. I won't try to hide behind some t&c to prove myself right when I know I did something wrong.

Dear exploiters, accept your mistake, and move on. At most try for a settlement.

(Am I alone?)

again, I'm here not justifying customers who misused the system. I'm just questioning the incompetent IT infrastructure of Axis Bank, which can't even handle a simple refund and reward points reversal task. Also, why did they take two years to fix the issue?

 

[Hiren7700]

Loopholes are there in every system.... everywhere.... doesn't mean you misuse them.... there's something known as acting in bad faith...some ppl think if there's a loophole then it needs to be exploited... First of all the op needs to be sent legal notice for the cancel and reissue scam that he did....

But How one can decide it was loophole or not ?

Lets assume for a moment that it was a loophole , so in this world of AI and Chatgpt , it may take some hours to fix it or max 1-2 days to fixing , here after months and year they are demanding, seems suspicious from Bank end as well , one of the reason may be initially they did this intentionally for seeling more and more credit cards , creating a nice image and this could reward them in stock market also.

We can not blame end user for this because atleast at the time of card closure, they should first recover the points if any.

Then what is the meaning of account closure and getting NOC.

It means that even we have closed any of the account with Axis , lets assume Home Loan before 5 years , still Axis can send recovery mail stating change in MITC or scheme.

 

[dexter_greycells]

OP's questions for Axis Bank sound like a sense of misplaced entitlement to me. Just because someone made a mistake and didn't close their door that doesn't mean you enter their home and leave with whatever you can. Asking them why they made a mistake is moot. Mistakes will happen. Ask yourself why you couldn't resist taking advantage of their mistakes.

 

[dexter_greycells]

One thing I've observed over the last few years—some Twitter credit card influencers who blame me for all Axis Bank devaluations don’t actually know the reality.

Why am I saying this? Because I never used the order-and-cancel glitch. I always knew that, sooner or later, Axis Bank would reverse points for those transactions.
People have been messaging some of my friends, asking how much Axis demanded from me. Strange how people assume that if someone received a notice, it must be me... lol.
Some even messaged me directly, asking if I received any notice and how many negative points I have right now!

Some air miles "mughlai" even shared screenshots from my TF Community post, claiming he would personally take this matter up with Axis Bank to penalize me. Well, I’m still waiting for that to happen... I even wished him good luck 😉.

Now, someone forwarded me a post from a bald guy (who considers himself the Indian authority on credit cards and luxury travel 😂). His Twitter post hinted at my TF Community post about Axis transfer misuse, and he even wished that Axis would start charging for airport transfers beyond the free limit of 4 per year. Well... good luck to them.

The actual reality? Many people, including some top Axis Bank employees, misused the system and sold crores worth of reward points. Some even bought flats, land plots, and jewelry using that money.

I was just a small fish — or, to be more precise, a tiny fish in an ocean full of giant sharks.

If you didn't misuse then you are not even a fish. You are a terrestrial watching things from a distance.

I just wished instead of bashing Axis (which is a TF Community timepass of sorts) you would have been a little empathetic to the honest people who keep the bank and it's systems running.

I have worked in IT for 18 years now and despite a company having the smartest people around and thorough processes in place big mistakes like this do happen once in a while. How we react to someone else's mistake says a lot about us.

 

[TechnoFinoTechnoFino is verified member.]

OP's questions for Axis Bank sound like a sense of misplaced entitlement to me. Just because someone made a mistake and didn't close their door that doesn't mean you enter their home and leave with whatever you can. Asking them why they made a mistake is moot. Mistakes will happen. Ask yourself why you couldn't resist taking advantage of their mistakes.

Well, many genuine users also ordered items, returned them, and received refunds, and they too have been affected by this circus… Yes, the amounts are lower for them. As I mentioned earlier in the thread, I’m not justifying the actions of users who exploited the system to gain reward points unfairly. However, you also have to understand that debiting reward points for reversed transactions is a basic feature, and all banks in India deduct reward points for such transactions instantly. How could a bank not detect such a glitch for over two years and then suddenly ask customers to pay for those reward points?

Now, let’s talk about the reward points value. When customers signed the MITC and applied for a credit card back in 2023, there was no specific value mentioned for each reward point. Axis Bank only introduced the reward point value in 2024, yet even customers who had closed their cards in 2023 received notices. Does applying the new MITC to customers who closed their cards before these terms existed justify Axis Bank’s actions?

Furthermore, Axis Bank itself mentioned that each reward point is valued at 20 paise. Now, they are demanding 40 paise per reward point. Do you still think Axis Bank is acting fairly in this situation?

And now, addressing the moral aspect—does Axis Bank follow the same ethical standards? Have you heard about Axis Bank's "consolidated charges"? The harsh reality is, there is no morality in business—only the agreements we sign.

 

[dexter_greycells]

Lets assume for a moment that it was a loophole , so in this world of AI and Chatgpt , it may take some hours to fix it or max 1-2 days to fixing , here after months and year they are demanding...

I can guarantee you are not a software engineer and most likely have never worked at a corporate. AI / ChatGPT are tools to help build IT systems. They are and never will be replacements for humans. Not every problem has a ready-made or standardized solution. Jugaad or creativity is strictly a human trait.

 

[ujjwal2024]

If you didn't misuse then you are not even a fish. You are a terrestrial watching things from a distance.

I just wished instead of bashing Axis (which is a TF Community timepass of sorts) you would have been a little empathetic to the honest people who keep the bank and it's systems running.

I have worked in IT for 18 years now and despite a company having the smartest people around and thorough processes in place big mistakes like this do happen once in a while. How we react to someone else's mistake says a lot about us.

It seems you have missed the bus and then now you are giving gyan being jealous to others and sending ill-will to them

 

[2025]

again, I'm here not justifying customers who misused the system. I'm just questioning the incompetent IT infrastructure of Axis Bank, which can't even handle a simple refund and reward points reversal task. Also, why did they take two years to fix the issue?

Sir, considering these two points, as you rightly mentioned, and the NOC during card closure (provided they didn't mention appropriate T&C in their NOC), I said you have strong and valid arguments. But these are arguments only, not the right thing.

They are definitely late—in fact, very late—but better late than never. It's good that they started recovering. People should also cooperate. Recovery is the right thing to do here, as you said, as the money is in crores.

Indian tax law allows reinvestigation up to 8 years if there is any mistake (even beyond if there is fraud). We cannot argue that we got a refund, so we are not liable to scrutiny or reinvestigation. Similarly, if the reward points were not ours, we should not fight for them.

Isn't it like encroaching on a land and then claiming it as if it belongs to the encroacher, blaming the actual owner of the land for why they have not resisted during the encroachment process? So it should be given to the encroacher.

If Indian law calls it justice even if they deliver after many years, then why not in this case? They realized this very late, so they already lost the interest income. If they charge interest, then that would be wrong. Otherwise, they are on the right track, sir. They might also lose in settlement, but that would be better for both parties.

 

[ccdc]

But How one can decide it was loophole or not ?

Lets assume for a moment that it was a loophole , so in this world of AI and Chatgpt , it may take some hours to fix it or max 1-2 days to fixing , here after months and year they are demanding, seems suspicious from Bank end as well , one of the reason may be initially they did this intentionally for seeling more and more credit cards , creating a nice image and this could reward them in stock market also.

We can not blame end user for this because atleast at the time of card closure, they should first recover the points if any.

Then what is the meaning of account closure and getting NOC.

It means that even we have closed any of the account with Axis , lets assume Home Loan before 5 years , still Axis can send recovery mail stating change in MITC or scheme.

This individual is an "einstein"....this individual thinks that applying ai/gpt can solve this at the current state of ai.


If Bank did this for selling more cards....then also it's wrong...provided Bank gets caught...some internal emails leaks and it shows bank deliberately left loopholes for selling more cc and the fact that they collaborated with ppl from outside the bank to promote this loophole for selling more cards....than the bank has no right to demand any money from abusers.


Bank usually gives noc based on facts and figures in front of them at that time of giving noc...such things always gets uncovered afterwards....


As far as home loan is concerned....there won't happen an abuse like this...if let's say a mass fraud will happen in home loans which has not surfaced uptill yet and it surfaces after few years....so bank is not supposed to take any action just coz account is closed and some noc given....bank will take criminal action against that individual.... right now bank is only taking civil action and demanding money...bank is well within rights to take criminal action...coz that action taken by individuals is with an intent to defraud...coz no one in their sane minds will order High value items just to return....that too multiple times....

 

[aaa1]

OP's questions for Axis Bank sound like a sense of misplaced entitlement to me. Just because someone made a mistake and didn't close their door that doesn't mean you enter their home and leave with whatever you can. Asking them why they made a mistake is moot. Mistakes will happen. Ask yourself why you couldn't resist taking advantage of their mistakes.

Exactly, It is hilarious that people who used to witchunt about who shared the trick on twitter/forum etc blaming that it led to devaluation while the actual reason for devaluation are abusers are jumping on technicality that it is Axis's fault for not having a "robust" system. Reminds of that Upmanyu joke, "Murderer toh gala kaatega hi, tum kyun gala leke bahar nikle?"

And also, as mentioned in the forum, for contracts/debts the statute of limitations is 3 years. There is a doctrine of good faith and IPC Sec 52 clearly defines an act not done in good faith. There are various cases where a contract has to be executed in good faith by both parties.

• In the case of Union of India v. D.N. Revri & Co.,(1976) the Hon'ble Court emphasized adopting a common-sense approach in interpreting contracts, ensuring that the essence and benefit for both parties are not thwarted by narrow or pedantic interpretations, particularly in commercial contracts subject to policy changes.
  
  
• The intention of the parties, which is crucial in determining the scope of good faith in contracts, can be ascertained from the express words used, the nature of the subject matter, the nature of the contract itself, and the surrounding circumstances, as held in the case of Swarnam Ramachandran v. Aravacode Chakungal Jayapalan (2004).

Doctrine of Good Faith and Fair Dealing

In the case of Kailas Sizing Works v. Municipality of Bhivandi and Nizampur,(1968) the Hon'ble Court elucidated that acting in good faith necessitates acting honestly, with fairness and uprightness, or willful negligence or consciousness of causing injury to others.

www.drishtijudiciary.com

What are the potential consequences for violating the principle of good faith in contractual dealings? Breach of Contract: Failure to act in good faith constitutes a breach of the implied contractual obligations, rendering the defaulting party liable for damages or other remedies available under the law of contracts.

The bank can allege that the No Dues Certificate was issued under a material mistake of fact i.e., the bank did not know the extent of the exploitation at the time. Under Section 20 or 21 of the Indian Contract Act, a contract or release granted under a fundamental mistake may be voidable or subject to restitution. Also, it has been established that providing a No Dues Certificate does not mean that they cannot file for damages later. (https://law.asia/no-claim-certification-does-not-relinquish-claims/)

Also, as per Section 70 of the Indian Contract Act, 1872, the principle of unjust enrichment, Axis bank can argue that the customers cannot be allowed to profit from a known mistake or glitch.

The only thing Axis needs to show is that these transactions were done to defraud the bank. Now people who did it once or twice most probably did not do it with intention to defraud. But people who did it repeatedly, it will show the clear intent to defraud.

So, since we are not in North Korea, the rule of the law stands, and Axis does have a strong legal stand. Let's see if they would go all the way or not. I doubt it cause Axis management has been known to be impotent, incompetent and useless.

Edit: Ohh and if they defined the value as 20p, they just can't come and ask for 40p. So, this aspect will most probably get settled at 20p or less.

 

[Tarun239]

The banks are charging hefty annual fees on super premium and ultra premium cards, then sudden devaluation, I think RBI should step in this, as a customer people do feel cheated as well, axis should improve there tech as well

 

[P3T3R_GOA]

I think about open a account in axis something negative always comes up about axis

Some divine power saving me

After getting frustrated with HDFC on the Infinia issue (I've posted that experience in the Infinia thread), I was seriously considering Axis. Your statement is applicable to me also.

Placing and canceling an order is a standard practice—there’s nothing wrong with it.

Doing this multiple times shouldn’t be an issue either.

Arey...

See, I’m just saying—I can place and cancel hundreds of orders as long as the merchant has no issue.

The bank chose to reward us with RPs for those orders. It’s not like we demanded them. They designed the reward system, not us. Even if no rewards were involved, would placing and canceling orders have been a problem? No, right? So why is it suddenly an issue now?

Nothing wrong with this and Axis has no problem with it. Coming to the main point. Axis gives you points for spends. So if you spend, cancel and get a refund, it is no longer a spend. Axis does not get anything from the merchant for this reversed transaction. So why should they do social work and give you points for money you didn't spend on their card.
Now Axis may be wrong in not removing the wrongly earned points and now sending legal notices. But it does not change the fact that what the people did was fundamentally wrong in the first place.
That's like saying that a murderer is innocent because the cops failed to arrest him soon after the murder and now they have no right to arrest him because they were incompetent.

Dear exploiters, accept your mistake, and move on. At most try for a settlement.

(Am I alone?)

No. I fully agree with you.

This thread is not justifying customers who misused the system. It is questioning the incompetent IT infrastructure of Axis Bank, which can't even handle a simple refund and reward points reversal task. Also, why did they take two years to fix the issue?

Looks like most people missed this point.

 

[plastikman]

OP's questions for Axis Bank sound like a sense of misplaced entitlement to me. Just because someone made a mistake and didn't close their door that doesn't mean you enter their home and leave with whatever you can. Asking them why they made a mistake is moot. Mistakes will happen. Ask yourself why you couldn't resist taking advantage of their mistakes.

When you are leaving your door open, you are endangering your property. Banks handle public money. More accountability is required. They can't leave the bank vault open to thieves. Thieves will steal and WILL pay for it in the end but Axeus shouldn't go scots free. They have to accept that their IT systems are faulty.

Kotak was penalised last year and similar restrictions should be placed on Axeus till the time they show that they are responsible to handle public wealth.

 

[P3T3R_GOA]

When you are leaving your door open, you are endangering your property. Banks handle public money. More accountability is required. They can't leave the bank vault open to thieves. Thieves will steal and WILL pay for it in the end but Axeus shouldn't go scots free. They have to accept that their IT systems are faulty.

Kotak was penalised last year and similar restrictions should be placed on Axeus till the time they show that they are responsible to handle public wealth.

Even if you leave you door open, the thief can't say he is not guilty of theft because it was your fault for leaving the door open. Agreed that Axis is at fault here. But they are not wrong in demanding that the thieves return the points they stole.