I have faced a similar issue.
On March 4, 2025, I applied for a Scapia Credit Card and was immediately rejected. I sent emails to Level 1, Level 2, and Level 3 support, referencing the relevant RBI circular.
However, Federal Bank refused to share the exact reason for the rejection.
On April 10, I registered a formal complaint with the RBI.
Surprisingly, on April 11, I received a response from Federal Bank referencing a completely unrelated credit card application dated April 1—this has no connection to my original complaint.
On April 21, I received a communication from the RBI Ombudsman requesting feedback or objections. I very strongly objected, pointing out that Federal Bank had responded with incorrect and misleading details regarding a different application.
It seems as though Federal Bank considers itself above regulatory accountability, acting as though it is the RBI itself.