Do Banks Consider Refund After Bill Generation as Payment?

[Lordkk]

Two days before the bill generation, I made an EMI payment, but the bill was generated for the full amount. After four days of bill generation, the transaction was converted into EMI, and I received a refund as part of the EMI conversion.

Do I need to make the full payment or only the remaining part (Total Bill - EMI refund)?

Thanks to @rahulsingla for pointing it out

As per para 10-(g) of RBI Master Direction – Credit Card and Debit Card – Issuance and Conduct Directions, 2022 (link)

"Any credit amount arising out of refund/failed/reversed transactions or similar transactions before the due date of payment for which payment has not been made by the cardholder, shall be immediately adjusted against the ‘payment due’ and notified to the cardholder."

So yes no matter the amount, name of the bank or type of refund the bank will consider it as a payment.

 

[Shoxie]

As long as you pay the minimum amount due, and then write to the customer care stating that you've received refund, and that you've also paid minimum amount due, they'll probably not levy anymore charges or reports etc.

By writing and getting it over email, you'll also be safe. So drop an email and be done with it!

Mark it as a solution if it my answer helped you out.

 

[rahulsingla]

Yes, it's law and not bank's choice now.

 

[Lordkk]

Yes, it's law and not bank's choice now.

Can you please explain which law are you talking about?

 

[pranay]

As long as you pay the minimum amount due, and then write to the customer care stating that you've received refund, and that you've also paid minimum amount due, they'll probably not levy anymore charges or reports etc.

By writing and getting it over email, you'll also be safe. So drop an email and be done with it!

Mark it as a solution if it my answer helped you out.

Better to call customer care and confirm. I had similar experience with sc. when I called they informed me that no payment is required.

 

[bigbyte]

As per RBI mandate all merchant refund credited before due date has to be treated as payment now. Earlier it used to differ with banks and I closed my SBI elite card on this issue long back.
However, for peace of find confirm with cust care.

 

[rahulsingla]

Can you please explain which law are you talking about?

Referring to RBI DoR.AUT.REC.No.27/24.01.041/2022-23 Dated April 21, 2022 it clearly says in para 10 (e) that payment towards refund and other similar transactions shall be adjusted against the payment due.

 

[pranay]

Referring to RBI DoR.AUT.REC.No.27/24.01.041/2022-23 Dated April 21, 2022 it clearly says in para 10 (e) that payment towards refund and other similar transactions shall be adjusted against the payment due.

It’s 10 (g)

 

[Lordkk]

Thanks you everyone for answering it. I have updated the post title and added a detailed answer with link. It is now more SEO friendly and will help others find it easily.

 

[cardio_guy]

Learnt that cashbacks or refunds after bill generation doesn't guarantee outstanding amount reduction.
If your bill amount generated is Rs 100, and you got cashback or refund of Rs 200 after the bill got generated, (even one day after bill generation), you still have to pay Rs 1000/- for that month. The Rs 200/- will be adjusted only in the next bill.
If you assume it will be adjusted in the current oustanding and pay only Rs 800/-, then be ready to pay the late fees, surcharge and all those fines. Most banks do not consider the cashback/refund in the outstanding bill amount for the ongoing cycle (Except a few). If you need confirmation, call customer care and ask clearly.
Better to be safe than sorry, just pay off in full and leave it. Though there are RBI guidelines and all other stuff, if you cannot negotiate and talk strong, banks will play against you.