Recently, Axis Bank sent email notifications to many customers who had misused their credit card reward system back in 2023. The glitch (or loophole, whichever you want to call it) was fixed in January 2024. In response, Axis debited edged points from customers who had taken advantage of this loophole between April 2023 and January 2024.
Here's how they did it:
Additionally, the bank threatened legal action if customers did not settle their negative Edge Points balance by paying money at the rate of 1 Edge Point = ₹0.40
Now, the problem is that Axis Bank has mentioned in their MITC (Point 9.G.) that each Edge Reward Point is valued at 20 paise. They have also stated that "this conversion value may vary for different card variants," but they have not clearly mentioned the value for each card variant. Moreover, they have not specified that they would reactivate closed cards and post charges for a negative reward points balance.
Many customers had closed their cards back in 2023 or early 2024, when the MITC did not mention such terms. Now, several of them have received email notifications stating that their reward points have been debited from their closed card accounts, and if they do not pay in cash, legal action will be taken. But how can a bank apply new rules retroactively and charge customers?
There are many people who exploited this loophole to earn rewards and are now sitting on negative balances of lakhs and crores of Edge Points, valued approximately between ₹2 lakh to ₹20 lakh at a rate of 1 Edge Point = ₹0.40.
Many will bring up the moral argument and question why customers misused the reward system in the first place. But I ask: Why didn’t Axis Bank have proper controls in place? Why couldn't they reverse reward points immediately after a transaction was reversed? This is a basic functionality—if a bank cannot manage this, does it even deserve to operate in India?
Strangely, the RBI remains silent while such an incompetent IT infrastructure exists within a major bank.
Possible solution:
As I always aim to post solution-oriented threads, I’d like to suggest a possible solution for this issue:
If you have received a notification asking you to pay cash for a negative reward points balance, email Axis Bank with the following points:
Subject: Dispute Regarding Negative Reward Points Charge
Dear Axis Bank,
When I closed my card, there was no clause stating that "In case a Cardholder has a negative Rewards Point Balance at the time of closure, the equivalent value of such negative reward points will be converted to a statement debit and must be paid by the Cardholder along with any other dues."
This clause has now been introduced in your updated MITC (Point 9.G.), but it did not exist at the time of my card closure.
As per our past agreement (when I closed my card), you cannot charge me for the negative Edge Reward Points balance. If you reactivate my closed card—for which I already have an NOC from you—I will escalate this issue to the RBI and will not hesitate to take the matter to consumer court.
I have attached both the new & old Axis Bank Credit Card MITC for your reference.
Thanks,
Customer Name
This is the first step—wait for Axis Bank's response. If they do not resolve your issue, escalate it to the RBI. If the RBI fails to help, do not hesitate to take the matter to consumer court.
If Axis Bank has already debited the amount, it’s best to pay it first and then fight the case, as non-payment will harm your CIBIL score.
One thing I’d like to clarify: Many people, after reading this, might think I’m trying to justify customers who misused the system. But that’s not the truth. I’m simply 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? Isn’t Axis Bank also responsible for this?
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, 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.
Some time ago, SBI Card also charged customers for reward points earned from shopping during ongoing discount sales. However, those who filed complaints with the RBI Banking Ombudsman (BO) successfully got the charges reversed by SBI Card.
I have attached both the new & old Axis Bank Credit Card MITC (Before 17th Dec, 2023) for your reference—you may need it.
The Loophole:
Back in 2023, there were a few major glitches in Axis Bank's reward system that affected all of their credit cards. Some customers—particularly those holding Axis Magnus, Axis Atlas, Axis Reserve, and other premium credit cards with high reward transfer ratios—exploited these glitches to earn Edge Reward Points in lakhs and crores.Here's how they did it:
- They would order high-value items from e-commerce websites like Amazon, Flipkart, Ajio, Myntra, etc.
- They would wait for Axis Bank to credit the reward points to their accounts.
- After receiving the reward points, they would cancel the order and get a full refund.
- Axis would refund the amount to their credit cards but failed to deduct the reward points from their accounts.
Additionally, the bank threatened legal action if customers did not settle their negative Edge Points balance by paying money at the rate of 1 Edge Point = ₹0.40
All photos used here are for reference and have been taken from the Twitter (X) account of Mr. Akash
Now, the problem is that Axis Bank has mentioned in their MITC (Point 9.G.) that each Edge Reward Point is valued at 20 paise. They have also stated that "this conversion value may vary for different card variants," but they have not clearly mentioned the value for each card variant. Moreover, they have not specified that they would reactivate closed cards and post charges for a negative reward points balance.
Many customers had closed their cards back in 2023 or early 2024, when the MITC did not mention such terms. Now, several of them have received email notifications stating that their reward points have been debited from their closed card accounts, and if they do not pay in cash, legal action will be taken. But how can a bank apply new rules retroactively and charge customers?
There are many people who exploited this loophole to earn rewards and are now sitting on negative balances of lakhs and crores of Edge Points, valued approximately between ₹2 lakh to ₹20 lakh at a rate of 1 Edge Point = ₹0.40.
I have a few questions for Axis Bank:
- Why didn’t you reverse reward points immediately after the transaction was reversed?
- Why did you allow customers to close their Axis credit cards with a negative reward points balance in the first place?
- Why are you applying new rules retroactively? People closed their credit cards back in 2023 or early 2024 when no such rules existed under MITC Point 9.G.
And a final question to the RBI:
Why are you not taking any action against Axis Bank when they are clearly violating customer rights? Axis Bank’s credit card reward system is full of technical glitches, yet there is no regulatory intervention.Many will bring up the moral argument and question why customers misused the reward system in the first place. But I ask: Why didn’t Axis Bank have proper controls in place? Why couldn't they reverse reward points immediately after a transaction was reversed? This is a basic functionality—if a bank cannot manage this, does it even deserve to operate in India?
Strangely, the RBI remains silent while such an incompetent IT infrastructure exists within a major bank.
Possible solution:
As I always aim to post solution-oriented threads, I’d like to suggest a possible solution for this issue:
If you have received a notification asking you to pay cash for a negative reward points balance, email Axis Bank with the following points:
Subject: Dispute Regarding Negative Reward Points Charge
Dear Axis Bank,
When I closed my card, there was no clause stating that "In case a Cardholder has a negative Rewards Point Balance at the time of closure, the equivalent value of such negative reward points will be converted to a statement debit and must be paid by the Cardholder along with any other dues."
This clause has now been introduced in your updated MITC (Point 9.G.), but it did not exist at the time of my card closure.
As per our past agreement (when I closed my card), you cannot charge me for the negative Edge Reward Points balance. If you reactivate my closed card—for which I already have an NOC from you—I will escalate this issue to the RBI and will not hesitate to take the matter to consumer court.
I have attached both the new & old Axis Bank Credit Card MITC for your reference.
Thanks,
Customer Name
This is the first step—wait for Axis Bank's response. If they do not resolve your issue, escalate it to the RBI. If the RBI fails to help, do not hesitate to take the matter to consumer court.
If Axis Bank has already debited the amount, it’s best to pay it first and then fight the case, as non-payment will harm your CIBIL score.
One thing I’d like to clarify: Many people, after reading this, might think I’m trying to justify customers who misused the system. But that’s not the truth. I’m simply 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? Isn’t Axis Bank also responsible for this?
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, 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.
Some time ago, SBI Card also charged customers for reward points earned from shopping during ongoing discount sales. However, those who filed complaints with the RBI Banking Ombudsman (BO) successfully got the charges reversed by SBI Card.
I have attached both the new & old Axis Bank Credit Card MITC (Before 17th Dec, 2023) for your reference—you may need it.
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