Axis bank issuing card cancellation notice part 2

[TechnoFinoTechnoFino is verified member.]

Greetings everyone,

Yesterday, I had informed you all that numerous Axis Bank customers had received notifications to justify their spends, or else the bank might cancel their credit cards, specifically HNI Cards. To my surprise, I was also included in the list and was asked by Axis Bank to provide proof of my personal expenses.

Here is the thread- https://www.technofino.in/community...onal-credit-cards-for-business-expenses.9027/

Without delay, I shared all my invoices with them through email. I wasn't anxious about the notice as all my expenses were personal in nature.

Today, Axis Bank provided me with official clarification that my cards will not be canceled,

but they did caution against using the cards for business purposes. Hence, the amount of money spent, whether it is 10L, 50L or even 1 Cr, is not important as long as it can be justified as a personal expense.

Cheers 🥂

 

[anirban.choudhuryanirban.choudhury is verified member.]

money rotation is def illegal...since if IT dept finds out that the credits in your bank account/wallet are due to such tricks...there's nothing stopping them from counting it in your income...also on such spends banks have to give you rewards/milestone...so it's a cost to them as well for "useless spends".......as far as rent..tutuion fees etc is concerned...ppl have abused it a lot so these devaluations...otherwise nothing wrong in paying those from your cc if you're okay to bear charges...my thoughts..others might differ..

I would dis-agree , I couldn’t find any such IT law in where it says money rotation is illegal . . If you are ok to pay the pg charges , transaction charges , tds and income tax there is nothing illegal in it . And regarding reward points banks have already placed transaction charges on rent , they very well know that no one would pay real rent by paying transaction charges. And only people for rotating money would use the rent from credit card way . They are already mitigating the reward points on transaction charges

 

[TheMentalist]

Greetings everyone,

Yesterday, I had informed you all that numerous Axis Bank customers had received notifications to justify their spends, or else the bank might cancel their credit cards, specifically HNI Cards. To my surprise, I was also included in the list and was asked by Axis Bank to provide proof of my personal expenses.

Here is the thread- https://www.technofino.in/community...onal-credit-cards-for-business-expenses.9027/

Without delay, I shared all my invoices with them through email. I wasn't anxious about the notice as all my expenses were personal in nature.

Today, Axis Bank provided me with official clarification that my cards will not be canceled,
View attachment 11772
but they did caution against using the cards for business purposes. Hence, the amount of money spent, whether it is 10L, 50L or even 1 Cr, is not important as long as it can be justified as a personal expense.

Cheers 🥂

Can you share the Axis email address to which you provided the details and the Axis email(s) which replied back/sent the notice.

 

[ccdc]

I would dis-agree , I couldn’t find any such IT law in where it says money rotation is illegal . . If you are ok to pay the pg charges , transaction charges , tds and income tax there is nothing illegal in it . And regarding reward points banks have already placed transaction charges on rent , they very well know that no one would pay real rent by paying transaction charges. And only people for rotating money would use the rent from credit card way . They are already mitigating the reward points on transaction charges

my friend there are many things in IT which are based on assessing officer...they can derive court cases where there's "supposedly no rule" visible to a layman... any credit in your bank acc6has to be explained...and if not able to explain it gets added in your income. you don't even have an idea what happens when your case is taken up for scrutiny...

 

[neogen]

Greetings everyone,

Yesterday, I had informed you all that numerous Axis Bank customers had received notifications to justify their spends, or else the bank might cancel their credit cards, specifically HNI Cards. To my surprise, I was also included in the list and was asked by Axis Bank to provide proof of my personal expenses.

Here is the thread- https://www.technofino.in/community...onal-credit-cards-for-business-expenses.9027/

Without delay, I shared all my invoices with them through email. I wasn't anxious about the notice as all my expenses were personal in nature.

Today, Axis Bank provided me with official clarification that my cards will not be canceled,
View attachment 11772
but they did caution against using the cards for business purposes. Hence, the amount of money spent, whether it is 10L, 50L or even 1 Cr, is not important as long as it can be justified as a personal expense.

Cheers 🥂

To be honest, I didn't like the tone and the way they have approached this. They should be apologetic and should reward you for the discomfort they have caused.

 

[anirban.choudhuryanirban.choudhury is verified member.]

my friend there are many things in IT which are based on assessing officer...they can derive court cases where there's "supposedly no rule" visible to a layman... any credit in your bank acc6has to be explained...and if not able to explain it gets added in your income. you don't even have an idea what happens when your case is taken up for scrutiny...

Finance is a very personal matter , I don’t think IT department keeps their surveillance active on each account , they just don’t have the required man power on that . First of all your bank need to identify suspicious account who then forward the details to IT post that there is any kind of scrutiny by them . Also it’s not true that we need to justify every inward transactions , I have 17 + bank account and I have rotating money in my accounts since last 6 to 7 years just to maintain the MAB across all my accounts. I have never faced any issue neither any IT notice .
Law is nothing but common sense , only thing that is a red flag is your expenses can never be more than your income that’s it , if you maintain that and have proof for that no IT/ED can do any harm .

 

[kkk]

Suppose I use my credit card for investment(like for NPS), will that count as illegal or will it cause card cancellation. Few places we can use for personal investment - NPS, some Invoice discounting firm. Obviously there are extra charges on using credit card on this platform. @TechnoFino

 

[anirban.choudhuryanirban.choudhury is verified member.]

Suppose I use my credit card for investment(like for NPS), will that count as illegal or will it cause card cancellation. Few places we can use for personal investment - NPS, some Invoice discounting firm. Obviously there are extra charges on using credit card on this platform. @TechnoFino

No this are not illegal transactions . May be using cc for invoice discounting can be counted towards commercial usage but , not NPS .

 

[kkk]

No this are not illegal transactions . May be using cc for invoice discounting can be counted towards commercial usage but , not NPS .

I think both are investment. NPS is one kind of long term investment. Invoice discounting is short term investment. I use my card for both type of investment, so I am confused whether I should continue as I don't want my card to be cancelled.

Other question, in case they do cancel the card for above reason, will they return back joining/annual fee?

 

[vgarg]

@TechnoFino first of all congratulations. I would like to ask you spend on my magnus so the thing is my brother is planning a trip of 3 or 4 countries after may and i was thinking i should buy his tickets from my magnus credit card but after this notice things should i Avoid buying tickets for him? Amount will not exceed 300k total but does it comes under commercial use??

Please do check that the airline does not ask for the credit card for the boarding pass or if any other formalities related to the booking.

 

[Wealth is my birth right!]

I think both are investment. NPS is one kind of long term investment. Invoice discounting is short term investment. I use my card for both type of investment, so I am confused whether I should continue as I don't want my card to be cancelled.

Other question, in case they do cancel the card for above reason, will they return back joining/annual fee?

On prorata u can claim back but normally they don’t refund

 

[Copycat]

To be honest, I didn't like the tone and the way they have approached this. They should be apologetic and should reward you for the discomfort they have caused.

I agree. The tone of that 2nd letter was not very pleasant; it was almost as if they were doing you a favour. Someone at Axis needs to use Grammarly 🙂

 

[Zacobite]

I would dis-agree , I couldn’t find any such IT law in where it says money rotation is illegal . . If you are ok to pay the pg charges , transaction charges , tds and income tax there is nothing illegal in it . And regarding reward points banks have already placed transaction charges on rent , they very well know that no one would pay real rent by paying transaction charges. And only people for rotating money would use the rent from credit card way . They are already mitigating the reward points on transaction charges

It is not illegal if done via genuine means. the banks are trying to block commercial use on personal cards.. However money rotation may come up for scrutiny if done excessively by any financial entity..

 

[Zacobite]

Is there’s any limit of how much cashback per month is safe for axis flipkart card?
Like 8000 for amazon icici and 10000 for sbi cashback.

Cashback upto 50k per year is allowed by IT.. After that they may consider it as income if it is brought to their notice and taxed as gift tax.. only for personal usage..Discounts are not counted as cash back

 

[smartraguln]

Hi, few real estate companies are accepting credit card payment. Is it legal to pay that amount in credit card since it is a personal expense for buying plot?

 

[EINSTEIN]

Hi, few real estate companies are accepting credit card payment. Is it legal to pay that amount in credit card since it is a personal expense for buying plot?

As long as the money used to pay the bill is from legitimate sources and already taxed nothing is illegal. But banks may not like you using card for investment and may even block the card. Something like this happened to one user who paid large medical bill using apay card. Best course of action would be to split the payment between cards and not exceed 10L per card.

 

[thanix]

Hi, few real estate companies are accepting credit card payment. Is it legal to pay that amount in credit card since it is a personal expense for buying plot?

Yes it is perfectly legal. Please be aware of the charges they levy for credit card payment.

 

[sonuyos]

He did say that he lost his Magnus & Reserve over discord. Not sure what is Axis doing. They should rather reward him for the troubles and they going and cancelin his cards :/

 

[RewardsAlert]

He did say that he lost his Magnus & Reserve over discord. Not sure what is Axis doing. They should rather reward him for the troubles and they going and cancelin his cards :/

@sonuyos
Can you please confirm who lost Reserve and Magnus, as I can't understand whom are you talking about?

 

[Wealth is my birth right!]

He did say that he lost his Magnus & Reserve over discord. Not sure what is Axis doing. They should rather reward him for the troubles and they going and cancelin his cards :/

U mean he used those 2 cards in discord payments due to which card banned
Just for an awareness I am asking

 

[RewardsAlert]

U mean he used those 2 cards in discord payments due to which card banned
Just for an awareness I am asking

No, he is trying to say that someone lost Reserve and Magnus and this fact was conveyed to him over Discord