Federal card rejection - RBIO complaint

[diptarkaroy]

Hello guys,

I applied for federal bank credit card and it was rejected without any proper reason. They have also mentioned that their decision is not directed by my credit worthiness

I requested to provide precise reason of rejection as per the RBI guideline and they didn’t oblige.

I raised a complaint to RBIO for the same. Today I got a reply from them that the bank account statement I uploaded (while applying) was not as per their expected format.

I have attached SS

However, I uploaded the standard ICICI bank account statement which they provide through email. If it is not as per their expected format, how did it go through the initial validation (by their system)?

This is a bogus excuse they are making up to avoid RBI charges.

Please advise, what should I do now?

 

[diptarkaroy]

Today, they have opened the system for me so that I can re apply. However, I have checked that they have a system to scan the bank account details (through Perfios) if I provide my net banking credentials

Is that a safe approach? Has anyone availed that in the past?

 

[AlgoTrader]

Today, they have opened the system for me so that I can re apply. However, I have checked that they have a system to scan the bank account details (through Perfios) if I provide my net banking credentials

Is that a safe approach? Has anyone availed that in the past?

I did last week and seems it didn't work properly, took 10+ minutes and showed application rejected message

 

[AllThatStuff]

Two days back, my application too was declined. Today I've written back to them, quoting RBI Guideline, asking for exact reason for rejection. Lets the battle begin !!! ⚔️

Yesterday received this reply from the bank !!

 

[diptarkaroy]

Finally I got the card
Got the email today stating my card is approved and would be dispatched soon
All though it’s Imperio… doesn’t matter to me much as this is just for the bank offers

 

[AllThatStuff]

Finally I got the card
Got the email today stating my card is approved and would be dispatched soon
All though it’s Imperio… doesn’t matter to me much as this is just for the bank offers

Big congo bro 👊!!

 

[ccent]

Finally I got the card
Got the email today stating my card is approved and would be dispatched soon
All though it’s Imperio… doesn’t matter to me much as this is just for the bank offers

Congratulations. can you please share how many credit enquiries were there in the last 3 and 6 months? many people with more than 6 credit enquiries in last 3 months got rejected. just want to confirm whether the number of credit enquiries actually matters or not. thanks

 

[diptarkaroy]

Congratulations. can you please share how many credit enquiries were there in the last 3 and 6 months? many people with more than 6 credit enquiries in last 3 months got rejected. just want to confirm whether the number of credit enquiries actually matters or not. thanks

I don’t think it matters
I surely have more than 6 enquires in last 3 months
Still my application went through

Initially they rejected my application citing the uploaded bank statement is not as per their prescribed format
I raised a RBIO complaint

Things got sorted after that

 

[AllThatStuff]

Toady I got the following reply from the bank,

"Greetings from Federal Bank.

Please note that your application for new Federal Bank Credit has been rejected since the application is not fulfilling the Bank’s internal credit underwriting & risk policy. Kindly be assured that this may not be construed as an indication of your creditworthiness.
Thank you for showing interest in Federal bank Credit cards."

Is this justification by Federal Bank fulfills the criteria of RBI Guidelines of which says, "the card-issuer shall convey in writing the SPECIFIC REASONS which led to the rejection of the application"

Can the case be escalated to RBI?

@diptarkaroy @sjmajumder

 

[sjmajumder]

Toady I got the following reply from the bank,

"Greetings from Federal Bank.

Please note that your application for new Federal Bank Credit has been rejected since the application is not fulfilling the Bank’s internal credit underwriting & risk policy. Kindly be assured that this may not be construed as an indication of your creditworthiness.
Thank you for showing interest in Federal bank Credit cards."

Is this justification by Federal Bank fulfills the criteria of RBI Guidelines of which says, "the card-issuer shall convey in writing the SPECIFIC REASONS which led to the rejection of the application"

Can the case be escalated to RBI?

@diptarkaroy @sjmajumder

I don't think you can escalate as they have given the reason for rejection and not simply mentioned "due to internal policies".

 

[AllThatStuff]

I don't think you can escalate as they have given the reason for rejection and not simply mentioned "due to internal policies".

Ok thanks..
But what does it mean to say Bank’s internal credit underwriting & risk policy ??

 

[sjmajumder]

Ok thanks..
But what does it mean to say Bank’s internal credit underwriting & risk policy ??

Copy paste from Google:

Credit underwriting involves a risk assessment process that includes evaluating a borrower's credit history, debt-to-income ratio, employment, age, experience, and other factors. The process also helps lenders identify and manage risks, such as credit spread risk, concentration risk, and industry/market risk.

According to the Reserve Bank of India (RBI), every bank should have a credit risk policy document that's approved by the board. This document should include:

• Risk identification
• Risk measurement
• Risk grading and aggregation techniques
• Reporting
• Risk control and mitigation techniques
• Documentation
• Legal issues
• Management of problem loans
  

Some areas where banks can strengthen their underwriting practices include:

• Establishing clear risk acceptance criteria
• Improving credit assessments
• Monitoring loans priced below hurdle rates and other credit policy deviations
• Authorizing credits to related companies and individuals on an exception basis
• Taking appropriate steps to control or mitigate the risks of non-arm's length lending

 

[AllThatStuff]

Copy paste from Google:

Credit underwriting involves a risk assessment process that includes evaluating a borrower's credit history, debt-to-income ratio, employment, age, experience, and other factors. The process also helps lenders identify and manage risks, such as credit spread risk, concentration risk, and industry/market risk.

According to the Reserve Bank of India (RBI), every bank should have a credit risk policy document that's approved by the board. This document should include:

• Risk identification
• Risk measurement
• Risk grading and aggregation techniques
• Reporting
• Risk control and mitigation techniques
• Documentation
• Legal issues
• Management of problem loans

Some areas where banks can strengthen their underwriting practices include:

• Establishing clear risk acceptance criteria
• Improving credit assessments
• Monitoring loans priced below hurdle rates and other credit policy deviations
• Authorizing credits to related companies and individuals on an exception basis
• Taking appropriate steps to control or mitigate the risks of non-arm's length lending

Oh...I didn't ask for this, just that if you aware in layman's language.
Thanks anyways for putting so much effort !!

 

[sjmajumder]

Oh...I didn't ask for this, just that if you aware in layman's language.
Thanks anyways for putting so much effort !!

In layman's language, they check your credit report and validate against their internal parameters and decide. It's not just your credit score they look into but also your payment history, total loan outstanding, etc.

 

[diptarkaroy]

Wh

Toady I got the following reply from the bank,

"Greetings from Federal Bank.

Please note that your application for new Federal Bank Credit has been rejected since the application is not fulfilling the Bank’s internal credit underwriting & risk policy. Kindly be assured that this may not be construed as an indication of your creditworthiness.
Thank you for showing interest in Federal bank Credit cards."

Is this justification by Federal Bank fulfills the criteria of RBI Guidelines of which says, "the card-issuer shall convey in writing the SPECIFIC REASONS which led to the rejection of the application"

Can the case be escalated to RBI?

@diptarkaroy @sjmajumder

What I got from them was bit different… it was more generic rejection reason for me

Hence I raised the complaint to RBIO and it got resolved. They have issued the card as well. Though it’s Imperio but it still serves my purpose as I wanted that card only for the bank offers

 

[sjmajumder]

What I got from them was bit different… it was more generic rejection reason for me

Hence I raised the complaint to RBIO and it got resolved. They have issued the card as well. Though it’s Imperio but it still serves my purpose as I wanted that card only for the bank offers

They have learnt their lesson now

 

[Harry1]

Finally I got the card
Got the email today stating my card is approved and would be dispatched soon
All though it’s Imperio… doesn’t matter to me much as this is just for the bank offers

Wow, I have been rejected 4-5 times by them, keep applying every 3-4 months. And have raised to RBI Ombudsman thrice as well for the reason. RBI Ombudsman closes the complaint after they give some random reason 😔.

 

[sjmajumder]

Wow, I have been rejected 4-5 times by them, keep applying every 3-4 months. And have raised to RBI Ombudsman thrice as well for the reason. RBI Ombudsman closes the complaint after they give some random reason 😔.

I don't think RBIO will close the complaint on receiving any random reason. If sufficient reason is not there Federal Bank would have no option but to issue the card. Read my story here.

 

[Harry1]

I don't think RBIO will close the complaint on receiving any random reason. If sufficient reason is not there Federal Bank would have no option but to issue the card. Read my story here.

They response they gave to RBI Ombudsman was the applicant has a very thin cibil score. I don't know what that means. But my cibil was 780 and there was no enquiry from federal Bank. RBI closed complaint without any follow up from me. For me, that counts as random reason 😜.

 

[diptarkaroy]

I'm facing another weird issue since my card is approved. I tried to access my digital card through FedMobile application and it keeps on asking my 14 digit account number. I dropped an email to them to fix an issue.
However, as per their response, as I hold Federal bank account with my INDmoney account, the app will always ask for the account number only. I got my Federal account number from the INDmoney app and logged in, however, they are not showing any credit card there.
Now my situation is, I would have any Federal bank credit card, but I won't be able to access that digitally ever (or at least they resolve this shitty issue).

 

[pradeepG]

I'm facing another weird issue since my card is approved. I tried to access my digital card through FedMobile application and it keeps on asking my 14 digit account number. I dropped an email to them to fix an issue.
However, as per their response, as I hold Federal bank account with my INDmoney account, the app will always ask for the account number only. I got my Federal account number from the INDmoney app and logged in, however, they are not showing any credit card there.
Now my situation is, I would have any Federal bank credit card, but I won't be able to access that digitally ever (or at least they resolve this shitty issue).

don't panic mail them promptly, it will resolve.