Kotak Bank Credit Card Blocked citing Internal Bank Guidelines

[Learnerlearn]

Good evening

I had a Kotak Urbane Rupay Credit card which was blocked by bank without any reason and just citing the reason as "Internal Bank Guidelines" and blocking from their end.
This card my first ever credit card with the least limit out of all the cards(₹10000) plus I hadn't used it in a while since it's pretty much a useless card for me with a limit like that.

When I mailed the bank, all I got was the usual response of "Internal Bank Guidelines" plus "Kindly note: We do regular internal credit check bases which the decision has been made to block the card."

I wanted to know if I can get the bank to give the specific reason or blocking the card ?? Or would I need to escalate further or this issue to their nodal officer or to RBI Ombudsman?

The card bill was already paid, so no outstanding dues on that. But would there be any severe impact on my cibil score or any other drastic impact? My current CIBIL score is 776.

Thanks!🙂

 

[wiizzard]

Was it unused for more than a year ? In that case it will be closed as per RBI guidelines

 

[Aniket]

Good evening

I had a Kotak Urbane Rupay Credit card which was blocked by bank without any reason and just citing the reason as "Internal Bank Guidelines" and blocking from their end.
This card my first ever credit card with the least limit out of all the cards(₹10000) plus I hadn't used it in a while since it's pretty much a useless card for me with a limit like that.

You hadn't used the card for more than a year? They have right to close the card as per RBI but only when cardholder fails to comply after getting served with the notice notice within 30 days from the notice date.

When I mailed the bank, all I got was the usual response of "Internal Bank Guidelines" plus "Kindly note: We do regular internal credit check bases which the decision has been made to block the card."

Had you received any sorts of notice/ intimation and provided you the period of 30 days before closing the card?

I wanted to know if I can get the bank to give the specific reason or blocking the card ??

Specific reason could be inactivity! But yeah ask them, the main definite reason.

Or would I need to escalate further or this issue to their nodal officer or to RBI Ombudsman?

You should definitely escalate and if they reply that the card was closed because of inactivity then you can defend by stating that you hadn't received any notice for the same before closing the card. It can't be closed without giving proper notice.

Hope, you hadn't received the same.

If the card was closed because of some another reason then we can reply after knowing the reason only what would be the best possible ans or ways to escalate/ compliant against it.

The card bill was already paid, so no outstanding dues on that. But would there be any severe impact on my cibil score or any other drastic impact? My current CIBIL score is 776.

There will be since it's your very first card. Gap between 1st and 2nd card?

You can check the possible effects using cibil simulator tool. How much it will impact can be known by the said method.

Thanks!🙂

Welcome!

Hope, I have addressed your concern properly.

 

[love4cards]

You hadn't used the card for more than a year?

Had you received any sorts of notice/ intimation and provided you the period of 30 days before closing the card?

Specific reason could be inactivity! But yeah ask them, the main definite reason.

You should definitely escalate and if they reply that the card was closed because of inactivity then you can defend you hadn't received any notice for the same before closing the card. It can't be closed without giving proper notice and 30 days time period.

Hope, you hadn't received the same.

If the card was closed because of some another reason then we can reply after knowing the reason only best possible ans or ways to escalate/ compliant.

There will be since it's your very first card. Gap between 1st and 2nd card?

You can check the possible effects using cibil simulator tool. How much it will impact can be known by the said method.

Welcome!

Hope, I have addressed your concern properly.

properly and I must say at length 🙂

 

[Learnerlearn]

Was it unused for more than a year ? In that case it will be closed as per RBI guidelines

Nope. I had used the card in August as per my credit card statements.

 

[Learnerlearn]

You hadn't used the card for more than a year? They have right to close the card as per RBI but only when cardholder fails to comply after getting served with the notice notice within 30 days from the notice date.

I had used the card in August.

Had you received any sorts of notice/ intimation and provided you the period of 30 days before closing the card?

No Notice/intimation from the bank in last 30-45 days.

Specific reason could be inactivity! But yeah ask them, the main definite reason.

Yup. Waiting for their response. I asked them for complete details but not sure if I would get any from the bank until i escalate it .

You should definitely escalate and if they reply that the card was closed because of inactivity then you can defend by stating that you hadn't received any notice for the same before closing the card. It can't be closed without giving proper notice.

Hope, you hadn't received the same.

If the card was closed because of some another reason then we can reply after knowing the reason only what would be the best possible ans or ways to escalate/ compliant against it.

I didn't receive any notice or call from bank at all. I guess I will just have to wait for the customer care whether they would give me any valid reason or not.

There will be since it's your very first card. Gap between 1st and 2nd card?

You can check the possible effects using cibil simulator tool. How much it will impact can be known by the said method.

About 9 months gap.

 

[Learnerlearn]

@Aniket

I got this response from the grievance redressal after I escalated to them ---->

""As part of our ongoing review and our internal guidelines, the card has been blocked.

This is in accordance with Clause 7 of the Cardholder Agreement, which was sent to you along with your card. Here’s an excerpt for your reference:
'Termination/Revocation of Cardholdership: Kotak Mahindra Bank may also cancel the use of the Card at any time, without prior notice, if it reasonably believes it is necessary for the business or for security reasons, including if you delay payments, exceed the Credit Limit or if Cheques are returned.'

In such scenarios, the bank holds the rights to block the card as per the Most Important Terms & Conditions.""



With a reason like this could I pursue this issue in any other way since I don't see how my card would have faced any security issues since I never received any information from them before hand??

 

[aniketkr.sharma]

Nope. I had used the card in August as per my credit card statements.

Then Kotak gone mad after RBI ban lol

 

[Aniket]

@Aniket

I got this response from the grievance redressal after I escalated to them ---->

""As part of our ongoing review and our internal guidelines, the card has been blocked.

This is in accordance with Clause 7 of the Cardholder Agreement, which was sent to you along with your card. Here’s an excerpt for your reference:
'Termination/Revocation of Cardholdership: Kotak Mahindra Bank may also cancel the use of the Card at any time, without prior notice, if it reasonably believes it is necessary for the business or for security reasons, including if you delay payments, exceed the Credit Limit or if Cheques are returned.'

In such scenarios, the bank holds the rights to block the card as per the Most Important Terms & Conditions.""

Lagta hai Shaktikanta Das gaya and thoda bhaut jo dar bacha tha wo bhi hat gaya 🤣

By sending this they have complicating the case itself. 🤣

With a reason like this could I pursue this issue in any other way since I don't see how my card would have faced any security issues since I never received any information from them before hand??

Offcourse you can, you have locus standi.

Edit: Don't complain directly to RBI's BO, firstly raise complaint to level 2, Nodal Officer, if you will fail to get expected resolution.

You should ensure that you have incorporated legal provisions in your favour mentioned in the complaint raised, then only they will budge a bit to consider.

I will try to help you onwards, from L3, Principal Nodal Officer.

 

[bkext]

Next reply from bank could be this :::

 

[Aniket]

Next reply from bank could be this :::

Haha, what sorts of suspicious activities? They can block if it's found but can't terminate/revocate the Cardholdership when the fault doesn't lie on part of a cardholder.

They have themselves defeated some laws. 😂

 

[Learnerlearn]

Lagta hai Shaktikanta Das gaya and thoda bhaut jo dar bacha tha wo bhi hat gaya 🤣

By sending this they have complicating the case itself. 🤣

Offcourse you can, you have locus standi.

Edit: Don't complain directly to RBI's BO, firstly raise complaint to level 2, Nodal Officer, if you will fail to get expected resolution.

You should ensure that you have incorporated legal provisions in your favour mentioned in the complaint raised, then only they will budge a bit to consider.

I will try to help you onwards, from L3, Principal Nodal Officer.

I had raised the complain with grievance redressal( grievanceredressal.creditcards@kotak.com) and there were the ones who gave me this reason of Clause 7. I have responded to him asking for what exact security reason or incident happened which led to my card getting blocked. I also mentioned that if there was any security incident, I should have received a notification from bank about it, which I didn't receive.

Is the grievance redressal email Level 2 Nodal officer?

 

[Aniket]

I had raised the complain with grievance redressal( grievanceredressal.creditcards@kotak.com) and there were the ones who gave me this reason of Clause 7. I have responded to him asking for what exact security reason or incident happened which led to my card getting blocked. I also mentioned that if there was any security incident, I should have received a notification from bank about it, which I didn't receive.

Is the grievance redressal email Level 2 Nodal officer?

Ok, let them reply over it, then we will discuss next course of action.

L2: nodalofficer@kotak.com

L3: PNO.

 

[sumeet]

New thing in notice without any notice

 

[Learnerlearn]

Ok, let them reply over it, then we will discuss next course of action.

L2: nodalofficer@kotak.com

L3: PNO.

How many days should I wait for a reply before escalating it to L2 ???