Banks should give clear reason for application denial

[RishiKiDev]

Bhai, 5L ke promise pe 3-4L mile toh chalta hai. You got 35K. 🤣 Should have raised to Customer care.

Arey tab itna knowledge nahin tha cards ke baare mein.
Jo mila bas le liya 😂
Aur 4 saal uska annual fee bhi bhara maine. Ab jaake LTF hua wo

 

[Deleted member 21942]

I was naive. I got trapped by SBI sales agent who came to our college campus once and told me I'll get 5 Lakh limit.

I got only ₹35k 😂

I never apply through agents 😅

 

[aayusharyan]

I never apply through agents 😅

I only applied AmEx through agent, because I was not able to get it online. Some magic he did and got it approved.

 

[Deleted member 21942]

I only applied AmEx through agent, because I was not able to get it online. Some magic he did and got it approved.

From my experience, agent might have showed either an inflated salary or a change in company name according to AmEx corporate tie-ups.

 

[aayusharyan]

From my experience, agent might have showed either an inflated salary or a change in company name according to AmEx corporate tie-ups.

Yeo, but once approved, I can now ask AmEx to update that, even I moved my address to a non serviceable city and they did that.

 

[Deleted member 21942]

Yeo, but once approved, I can now ask AmEx to update that, even I moved my address to a non serviceable city and they did that.

Can you please tell me did you apply from a serviceable or unserviceable city?

 

[aayusharyan]

Can you please tell me how you applied from an unserviceable city?

No no, I applied from a serviceable city only (My company has Virtual office in WeWork, the agent used same address as residential and employment). We work can take packages on your behalf. After getting the card, I moved it out.

 

[aayusharyan]

I got a call today from SBI Cards Team. I can say it was official because that lady was able to pull up records from as back as 2019 applications. Also she said all the documents will be over SBI official email ID.

However, coming to the reason. She mentioned that the application is not rejected, it shows like that on portal. But it has been put on hold because I hold too many Credit Cards. (Which of course I do). She said that the documents are fine and reconfirmed stuff like Salary and all. I confirmed all that, she said that she is raising this up with her head of department and I should expect some response in 1 month. (I don't know why that long time, but anyways). She said once that is in process, she will only call back (Anyway if I don't hear from her until 15th December, I will start bothering the Customer Care again). I am not letting my efforts go in vain.

Follow up, I got another call today from SBI team. He just confirmed basic application details and confirmed whether the KYC is done or not? I said yes. He said thank you I have updated in the system and disconnected the call. Weird how they operate.

 

[aayusharyan]

Follow up, I got another call today from SBI team. He just confirmed basic application details and confirmed whether the KYC is done or not? I said yes. He said thank you I have updated in the system and disconnected the call. Weird how they operate.

Another follow up, got another call from SBI Cards. The same lady who called initially and informed about excess cards. This time she said this is final confirmation for issuance. She confirmed again Location, Salary, DOB. Then Said she is updating the card dispatch status and disconnected the call. Lol, idk what is happening, but surely they are doing something. Will keep updated.

 

[gowmara]

Another follow up, got another call from SBI Cards. The same lady who called initially and informed about excess cards. This time she said this is final confirmation for issuance. She confirmed again Location, Salary, DOB. Then Said she is updating the card dispatch status and disconnected the call. Lol, idk what is happening, but surely they are doing something. Will keep updated.

My sbi cc application rejected without proper reason. I have 2 sbi cc, I am trying to apply for cashback card. How did they processed your card

 

[aayusharyan]

My sbi cc application rejected without proper reason. I have 2 sbi cc, I am trying to apply for cashback card. How did they processed your card

My card is not processed yet. I am still in the process. I don't know what will happen. But I keep on updating here as they happen.
Also, if you have 2 SBI Core CC, chek if you have offers.
If you have applied already, then send an email demanding for a reason for rejection.

 

[xfactcc]

But, there is a Catch
In theory, it can be said that Banks have advised to do this, not mandated. So, the banker can argue that they are not required by law to state the reason. (That's why they still keep doing that, because they are not penalised for that). In that case, I would say keep pushing, maybe this particular agent didn't wanted to help, maybe next agent will help. If nothing, then go for OB, when all the other approaches are exhausted. Also, to be noted, RBI has used the term main reason/reasons. Bank person can theoretically argue that Internal Policies is the main reason, but again. Take a day off, then reply again in hopes of some other agent who can be more helpful.

I frequently see that RBI in its circulars commonly use language such as 'may, should, would' and not always 'must'. Since these circulars are themselves often addressed as 'guidelines' (as opposed to law) we may think that they may not be binding as you are suggesting here. I think it is just polite language, and if we approach RBI BO, they may consider it to be a binding directive, it is up to the arbitrator of course, often bank itself will budge after citing the clauses.

'Internal policy' cannot be considered a main reason as my common sense tells directates, it is a blanket term. A reason has to be specific and not generic like this. 'Internal policy' appears comparable to 'reasons', bank cannot say the application was rejected due to 'reasons', as I am sure the officials at RBI BO would also agree.

 

[aayusharyan]

I frequently see that RBI in its circulars commonly use language such as 'may, should, would' and not always 'must'. Since these circulars are themselves often addressed as 'guidelines' (as opposed to law) we may think that they may not be binding as you are suggesting here. I think it is just polite language, and if we approach RBI BO, they may consider it to be a binding directive, it is up to the arbitrator of course, often bank itself will budge after citing the clauses.

'Internal policy' cannot be considered a main reason as my common sense tells directates, it is a blanket term. A reason has to be specific and not generic like this. 'Internal policy' appears comparable to 'reasons', bank cannot say the application was rejected due to 'reasons', as I am sure the officials at RBI BO would also agree.

Yes, I agree with you, that's why we can only try to push our luck with the Banks, in hopes to get a response from the "right agent". We can't demand that. But, no harm in trying.

 

[xfactcc]

Yes, I agree with you, that's why we can only try to push our luck with the Banks, in hopes to get a response from the "right agent". We can't demand that. But, no harm in trying.

What I am saying because RBI in its guideline using the word 'should' instead of let's say 'must', that doesn't mean it's a suggestion and not a direction. RBI routinely uses such polite expressions. I would very much demand from the bank reason based on that, and if not recieved, approach the RBI BO.

 

[aayusharyan]

What I am saying because RBI in its guideline using the word 'should' instead of let's say 'must', that doesn't mean it's a suggestion and not a direction. RBI routinely uses such polite expressions. I would very much demand from the bank reason based on that, and if not recieved, approach the RBI BO.

Wow, okay. I am currently in process of pushing SBI and StanC. If I don't get a proper response, I will push to BO as well. 😉

 

[xfactcc]

Wow, okay. I am currently in process of pushing SBI and StanC. If I don't get a proper response, I will push to BO as well. 😉

Add reference to the RBI document, provide link, mention specific section as chapter, subclause, point etc. quote the instruction and then demand your requirement for additional impact.

 

[aayusharyan]

Ref RBI Circulars:
- https://www.rbi.org.in/commonperson/English/Scripts/Notification.aspx?Id=1574
- https://rbi.org.in/Scripts/NotificationUser.aspx?Id=3315&Mode=0

RBI says this.


Now, how we can use this for the benefits of consumers.
Basically, banks have the habit of giving a blanket reason of that the card application has been rejected because of Internal Policies of the bank. (I applied for Change of Address for an existing Credit Card and I received this response) But that reason can be considered as unclear and we can request for a more clear reason for rejection. Reasons like Age mismatch, Low Credit Score, too many cards issued recently, etc etc.

BUT NOT REJECTED BECAUSE INTERNAL POLICIES.

I am making this a habit now that for every rejection, I will not stay quiet. I will raise my voice. 1 hard credit enquiry has been made, I will fight for it. If Level 1 doesn't help, will raise to Level 2. (Contact emails can be found here - this thread)

I am sure we all would have faced situations where immediately after applying they give rejection. (Sometimes even before doing vKYC or even asking income documents). What reason they give? Internal Policies. 🤦🏻‍♂️ With citing this circular in the support emails, we have better chances of moving the balance needle towards us again.

But, there is a Catch
In theory, it can be said that Banks have advised to do this, not mandated. So, the banker can argue that they are not required by law to state the reason. (That's why they still keep doing that, because they are not penalised for that). In that case, I would say keep pushing, maybe this particular agent didn't wanted to help, maybe next agent will help. If nothing, then go for OB, when all the other approaches are exhausted. Also, to be noted, RBI has used the term main reason/reasons. Bank person can theoretically argue that Internal Policies is the main reason, but again. Take a day off, then reply again in hopes of some other agent who can be more helpful.

There is no harm in trying
With each of my email for rejection reason, I am also attaching some of the content for re-evaluation of my credit card application. Because end of the day, that's all that matters (I get the Card I applied for and spent my Enquiry on). (Reference details can be found here - this thread)

---
My experience:
- Rejected for SBI (applied through Sprint Portal) -> Sent Email -> this comment.
- Rejected for StanC (This also online application) -> Sent Email -> Waiting for response.
Please share your experiences also, I will keep indexing them here. Eventually, if we can prepare some sort of template for this for the benefits of consumers, it will be awesome. 😍

I got response from StanC that reason for my rejection non serviceable PIN code.
So, can't do much about that. Let's see what SBI says now.

 

[xfactcc]

I got response from StanC that reason for my rejection non serviceable PIN code.
So, can't do much about that. Let's see what SBI says now.

Some banks bluff about it as this is one of those open-and-shut reasons, as you too think.

Kotak for e.g. infamous for it.

 

[aayusharyan]

Some banks bluff about it as this is one of those open-and-shut reasons, as you too think.

Kotak for e.g. infamous for it.

That's a valid point of view, but how can we challenge that, has RBI mandated banks to make the serviceable PIN Codes publicly available?
I too think this reason was a faux reason because I have a SC branch in my city. How can they say it's unserviceable when they are servicing this area. But I can't push more than this I think. So, can't do anything about it. 🤷‍♂️

 

[Lobogris]

I applied as new to SBI after having around 15 cards and SBI Cashback was approved instantly online without any documents and a few months later I got SBI BPCL (only 20k limit though) even though I had applied for Octane.