IDFC First Bank is Not Following RBI Guidelines

[Shobhit Srivastava]

write a detail thread on it... I'll surely amplify this for you.

Look like they have pile up many NPA account and to make their balance sheet look progressive, they have choosen this ninja technique, so that they may present this data in their AGM and gain new investments, but if customer doesn't activates the card the will credit back to that A/c but that will happen in 30 days which will fall in H2 of FY 24-25 but their H1 profit wil be inflated due to this stunt.

 

[yolofino]

I am facing a similar situation with RBL cards.
In my case the card is LTF, so no charges.
But the card started showing up in CIBIL as soon as it was approved. I didn't activate the card because of a bad limit. It's been more than 2 months and it's still showing up in my CIBIL and their app. Seems like they activated it without my consent.
I have escalated this with their CEO team. Now they are looking at it. I will wait till this weekend before reaching to Ombudsman with all the proofs.

Demand 1 lakh compensation from RBL bank

 

[RajeshV]

If not activated in 30 days, bank have to close the card without any fees, so why would a bank post joining fees even before card activation? Why would a customer contact bank and ask for reversal of joining fees in case they want to close the card without activating it....

Customers shouldn't have to request reversal, it can be done automatically if not activated. Doesn't seem there's anything wrong with that, unless they don't as in vivian's case.

Can't go around questioning the logic of it while the customer is prepared to go through the application process and then proceed to never use the card.

 

[Rahul Gupta]

Hello TFCians,

Recently, I applied for the IDFC First Mayura Credit Card just for review purposes, as this card is not value for money, as I mentioned in my review article. I only planned to hold it for the first year. I've written a detailed review of this product, which you can check here: https://www.technofino.in/community...eview-is-it-truly-a-super-premium-card.31050/

After applying for the credit card, my application was approved within seconds, and the Mayura card began reflecting on my IDFC First mobile app within minutes. I hadn't activated the card, nor had I created a PIN. Essentially, I just applied, got approved, and did nothing further. Five days later, my Mayura card was delivered. Upon checking the IDFC First Bank app after delivery, I was shocked to find a charge of ₹7,078.82 on my Mayura card.

View attachment 68278


According to RBI guidelines, the bank cannot charge a joining fee until you activate the card. I decided not to activate the card and raised the issue with IDFC First Bank to understand why they weren't adhering to the guidelines.

To my further surprise, the next day, I received an SMS from CIBIL informing me that a new account had been added to my CIBIL report. When I checked my report, I found that IDFC First Bank had added the IDFC First Mayura credit card account, even though I hadn't activated the card yet.

View attachment 68277



As per RBI guidelines, the bank cannot add a newly opened credit card account to CIBIL or any other credit bureau report until the customer activates the card. But IDFC First Bank is doing the opposite. I don’t understand how such a well-established bank can fail to follow such basic guidelines.

While I know the rule and won’t accept any justification from the bank, many people may not be aware of these regulations and could be misled by the banks themselves. The RBI should take strict action against such banks to ensure they adhere to the guidelines, and banks must start following the rules out of fear of stringent action from the RBI.

Sbi is doing the same thing. I recently applied for sbi simplyclick card but due to low limit i decided to not to activate it. But after a while sbi sent me a statement with joining fees and they also reported the account to cibil. After my complaint they reversed the charges but they said cibil account can't be removed. Kindly do something about sbi as well.

 

[Sudip]

Same thing with SC and Amex cards. They come pre activated and JF is posted even if you don't activate the card.

I doubt about Amex imposing JF.

check this post :

Thread 'Got AMEX Platinum charge card as Lifetime free'

Sep 23, 2023

So you must be wondering how I got this card worth 72k fees as LTF.

Well it’s really simple and I think everyone who's eligible for this card can easily convert it into LTF.










I didn’t activate it

Thanks for reading and have a great day.

• Hisoka
• Replies: 33
• Forum: Just For Fun

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[TechnoFinoTechnoFino is verified member.]

Update on 11th September 2024:

I received a call from IDFC First Bank on 10th September 2024, informing me that they are working on the complaint and feedback I raised on social media and will provide a solution soon. On 11th September 2024 morning, I received another call from the senior executive team, stating that they had reviewed my issue with their concerned department.

The senior executive informed me that IDFC First Bank is fully complying with RBI guidelines. She explained:

1. Regarding Joining Fees: When applying for the Mayura credit card, it is clearly mentioned that the fees will be charged immediately, but customers are allowed to pay the fees after the statement is generated.
2. Regarding Credit Reporting: As per RBI guidelines, the bank has reported my Mayura credit card to CIBIL. She cited two reasons:
   • If a bank issues a "fee-based" card, it is allowed to report it to CIBIL even if the card is not activated.
   • My card was activated on 2nd September 2024, when I logged into the IDFC First Bank mobile app and checked the credit card section. According to the executive team, logging in and clicking on the credit card section is considered consent for activating the new card.

I was genuinely amazed by her response and found myself speechless. Then, I told her that I needed everything she said in writing via email. I also pointed out that the RBI's master guidelines for credit and debit cards do not classify cards as "fee-based" or "free." Where are they getting this information from? Furthermore, according to RBI guidelines, there are specific actions that count as consent for activating credit cards, and merely logging into the mobile app or clicking on the credit card section does not qualify as consent.

I also mentioned that just because you state the joining fees will be charged immediately doesn’t mean you’re allowed to do so. If the card has to be closed after 30 days if a customer doesn’t activate it, why post the joining fees in the first place? And why report the posted joining fees as an outstanding balance to CIBIL?

After the call, I was in disbelief at how a bank like IDFC First could take the regulator’s guidelines so lightly. I would definitely like to speak to their compliance head to better understand their perspective on this matter. As of now, while writing this post, I still haven't received any email from IDFC First Bank, despite the executive assuring me that I would receive one after the call.

For everyone's reference, here are the RBI guidelines regarding card activation consent:

Master Direction – Credit Card and Debit Card – Issuance and Conduct Directions, 2022 (Updated as on March 07, 2024)
Frequently Asked Questions (FAQs)
Query 3. What can be considered as activation of credit card?

Response: Customer-initiated process indicating intent to use a credit card such as PIN generation, modification of transaction control, Interactive Voice Response, recorded call to the customer care centre and SMS may be considered as activation. However, if the card is not activated by the cardholder for more than 30 days from the date of issuance, card-issuers shall seek One Time Password (OTP) based consent in line with para 6(a)(vi) of the MD.

Many people are experiencing issues with non-compliance from banks. After my post, several individuals shared that other banks had also charged their accounts before card activation and reported their new accounts to CIBIL prematurely. It’s high time the RBI steps in and takes strict action against such banks or card issuers to protect customers' interests. Ultimately, the RBI exists to safeguard customers like us.

 

[vivian]

Update on 11th September 2024:

I received a call from IDFC First Bank on 10th September 2024, informing me that they are working on the complaint and feedback I raised on social media and will provide a solution soon. On 11th September 2024 morning, I received another call from the senior executive team, stating that they had reviewed my issue with their concerned department.

The senior executive informed me that IDFC First Bank is fully complying with RBI guidelines. She explained:

1. Regarding Joining Fees: When applying for the Mayura credit card, it is clearly mentioned that the fees will be charged immediately, but customers are allowed to pay the fees after the statement is generated.
2. Regarding Credit Reporting: As per RBI guidelines, the bank has reported my Mayura credit card to CIBIL. She cited two reasons:
   • If a bank issues a "fee-based" card, it is allowed to report it to CIBIL even if the card is not activated.
   • My card was activated on 2nd September 2024, when I logged into the IDFC First Bank mobile app and checked the credit card section. According to the executive team, logging in and clicking on the credit card section is considered consent for activating the new card.

I was genuinely amazed by her response and found myself speechless. Then, I told her that I needed everything she said in writing via email. I also pointed out that the RBI's master guidelines for credit and debit cards do not classify cards as "fee-based" or "free." Where are they getting this information from? Furthermore, according to RBI guidelines, there are specific actions that count as consent for activating credit cards, and merely logging into the mobile app or clicking on the credit card section does not qualify as consent.

I also mentioned that just because you state the joining fees will be charged immediately doesn’t mean you’re allowed to do so. If the card has to be closed after 30 days if a customer doesn’t activate it, why post the joining fees in the first place? And why report the posted joining fees as an outstanding balance to CIBIL?

After the call, I was in disbelief at how a bank like IDFC First could take the regulator’s guidelines so lightly. I would definitely like to speak to their compliance head to better understand their perspective on this matter. As of now, while writing this post, I still haven't received any email from IDFC First Bank, despite the executive assuring me that I would receive one after the call.

For everyone's reference, here are the RBI guidelines regarding card activation consent:


Many people are experiencing issues with non-compliance from banks. After my post, several individuals shared that other banks had also charged their accounts before card activation and reported their new accounts to CIBIL prematurely. It’s high time the RBI steps in and takes strict action against such banks or card issuers to protect customers' interests. Ultimately, the RBI exists to safeguard customers like us.

Atleast IDFC addressed you. SBICard doesn't even acknowledge the RBI guidelines.
This "fee-based"/"free" classification is absolute BS. I am sure, they won't give this in writing.
In my case, I still haven't even registered myself in SBICard site/app.

 

[TechnoFinoTechnoFino is verified member.]

Atleast IDFC addressed you. SBICard doesn't even acknowledge the RBI guidelines.
This "fee-based"/"free" classification is absolute BS. I am sure, they won't give this in writing.
In my case, I still haven't even registered myself in SBICard site/app.

Next is your case, I'll highlight it tonight

 

[Sudip]

Update on 11th September 2024:

I received a call from IDFC First Bank on 10th September 2024, informing me that they are working on the complaint and feedback I raised on social media and will provide a solution soon. On 11th September 2024 morning, I received another call from the senior executive team, stating that they had reviewed my issue with their concerned department.

The senior executive informed me that IDFC First Bank is fully complying with RBI guidelines. She explained:

1. Regarding Joining Fees: When applying for the Mayura credit card, it is clearly mentioned that the fees will be charged immediately, but customers are allowed to pay the fees after the statement is generated.
2. Regarding Credit Reporting: As per RBI guidelines, the bank has reported my Mayura credit card to CIBIL. She cited two reasons:
   • If a bank issues a "fee-based" card, it is allowed to report it to CIBIL even if the card is not activated.
   • My card was activated on 2nd September 2024, when I logged into the IDFC First Bank mobile app and checked the credit card section. According to the executive team, logging in and clicking on the credit card section is considered consent for activating the new card.

I was genuinely amazed by her response and found myself speechless. Then, I told her that I needed everything she said in writing via email. I also pointed out that the RBI's master guidelines for credit and debit cards do not classify cards as "fee-based" or "free." Where are they getting this information from? Furthermore, according to RBI guidelines, there are specific actions that count as consent for activating credit cards, and merely logging into the mobile app or clicking on the credit card section does not qualify as consent.

I also mentioned that just because you state the joining fees will be charged immediately doesn’t mean you’re allowed to do so. If the card has to be closed after 30 days if a customer doesn’t activate it, why post the joining fees in the first place? And why report the posted joining fees as an outstanding balance to CIBIL?

After the call, I was in disbelief at how a bank like IDFC First could take the regulator’s guidelines so lightly. I would definitely like to speak to their compliance head to better understand their perspective on this matter. As of now, while writing this post, I still haven't received any email from IDFC First Bank, despite the executive assuring me that I would receive one after the call.

For everyone's reference, here are the RBI guidelines regarding card activation consent:


Many people are experiencing issues with non-compliance from banks. After my post, several individuals shared that other banks had also charged their accounts before card activation and reported their new accounts to CIBIL prematurely. It’s high time the RBI steps in and takes strict action against such banks or card issuers to protect customers' interests. Ultimately, the RBI exists to safeguard customers like us.

Meanwhile, RBI is slumbering.

It's easy to make guidelines but to check if those are followed, hardly any institution making such guidelines is doing in India.

Not just RBI even IRDAI for insurance related products.

 

[D7162]

Atleast IDFC addressed you. SBICard doesn't even acknowledge the RBI guidelines.
This "fee-based"/"free" classification is absolute BS. I am sure, they won't give this in writing.
In my case, I still haven't even registered myself in SBICard site/app.

In my case even RBI don't follow their own guidelines. As per their circular, bank has to give compensation for every delay in credit of failed transaction for T+3 days. In my case 44 days passed so I should get 4100, instead RBI asked SBI to give 2000 and closed complaint on non appealable clause

 

[Lucifer311]

A similar incident happened with my father regarding an Axis Bank credit card. He applied for an Axis Indian Oil credit card through an agent, who told him that it was a lifetime free card. However, after applying, we received an email from Axis Bank stating that the card is chargeable.

We did not activate the card, but a joining fee of ₹590 was still charged. When I spoke to customer care, they informed me that Axis Bank cards are activated from the beginning. Since I was aware of the RBI’s master direction, I escalated the issue to the next level. The next person I spoke to agreed to refund the charges and close the card. He also mentioned that we would receive a confirmation once the issue was resolved.

This happened last week, and I am still waiting for any confirmation via email, SMS, or call.

 

[anisharya16]

Okay, so that's why my SBI pulse got activated. Just cause I opened app and viewed card details. Man these minor details are so juggled up.

 

[corpSlave:P]

A similar thing happened with the IndusInd Easy Dinner card.
The delivery person refused to deliver due to an address issue, so the card was not delivered and was never activated.

But still, I got the card statement generated to pay 1999+taxes.

Following up with IndusInd is a nightmare, eventually, after 1-2 weeks of continues repeated emails to grievance/nodal they closed the card and waved off the fee.

 

[anisharya16]

A similar thing happened with the IndusInd Easy Dinner card.
The delivery person refused to deliver due to an address issue, so the card was not delivered and was never activated.

But still, I got the card statement generated to pay 1999+taxes.

Following up with IndusInd is a nightmare, eventually, after 1-2 weeks of continues repeated emails to grievance/nodal they closed the card and waved off the fee.

But still had to pay GST right?

 

[imdjay]

Next is your case, I'll highlight it tonight

Also my case,
I received this response today from the RBL senior escalation desk after escalating my case to the CEO.
According to them, login to their RBL MyCard app is considered as credit card activation.
I have already sent my final email with all the proofs and communication in which I was told that my card was not activated. Also, I have written that nowhere on their website or TnC it's mentioned that using their MyCard app will be considered as activating the card. This cannot be considered as Intent to use the card. My ask for compensation is very small, I hope they will accumulate that. Otherwise, I will be escalating this next week to BO.

 

[TechnoFinoTechnoFino is verified member.]

Also my case,
I received this response today from the RBL senior escalation desk after escalating my case to the CEO.
According to them, login to their RBL MyCard app is considered as credit card activation.
I have already sent my final email with all the proofs and communication in which I was told that my card was not activated. Also, I have written that nowhere on their website or TnC it's mentioned that using their MyCard app will be considered as activating the card. This cannot be considered as Intent to use the card. My ask for compensation is very small, I hope they will accumulate that. Otherwise, I will be escalating this next week to BO.

View attachment 68503

you should start a new thread mentioning all the details date wise...

 

[Aniket]

Also my case,
I received this response today from the RBL senior escalation desk after escalating my case to the CEO.
According to them, login to their RBL MyCard app is considered as credit card activation.
I have already sent my final email with all the proofs and communication in which I was told that my card was not activated. Also, I have written that nowhere on their website or TnC it's mentioned that using their MyCard app will be considered as activating the card. This cannot be considered as Intent to use the card. My ask for compensation is very small, I hope they will accumulate that. Otherwise, I will be escalating this next week to BO.

View attachment 68503

They haven't told clearly that using application will be considered activation.

Instead, their saying is that you have activated from your end by using the app.

The sentence is bogus, and can be interpreted in many ways.

 

[imdjay]

They haven't told clearly that using application will be considered activation.

Instead, their saying is that you have activated from your end by using the app.

The sentence is bogus, and can be interpreted in many ways.

@VISHESH_BANSAL bhai ne kaha hai. ye hi kehte hain wo. aur waisa hi kaha unhone. so it meant the same.
For now, in my reply to them, I have mentioned both things. I didn't activate the card but only logged into their app. and login should not be considered as activation.

 

[mastfun]

@TechnoFino How about my case 🙂 HDFC never mentioned that I wouldn't get core card when I have only co-branded cards! I followed RM's instructions and rejected for Core card 🙁 Misguiding the customers!

M

Infinia Thread '[HDFC INFINIA] Shattered Dreams of Obtaining it!'

Aug 31, 2024

I have been fighting for HDFC Infinia and finally today got verdict that I cannot get Infinia unless I close all my co-branded cards, Practically not possible as I use my Tata Neu Infinity card everyday !

Summarized Journey with HDFC​

2012:

• Opened a salary account with HDFC, received a free lifetime Platinum VISA card.

2014:

• Returned to ICICI due to poor HDFC service; HDFC account changed to regular savings.

2022:

• Applied for Millennia LTF card; rejected due to existing LTF Visa Platinum card.
• Advised to cancel Platinum card and...

• mastfun
• hdfc infinia infinia
• Replies: 154
• Forum: Super Premium Credit Cards

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I am yet to get response from HDFC for misguiding:

 

[peregrine0falcon]

Do these also fall in RBI's activation directives for card activations?