Kotak Card Decline: Got an "NPA" Code (B20) but I have NO NPAs! Help needed on how to challenge this.

[Ric287]

I applied for a Kotak card on Oct , but it was declined with some confusing codes provided via an RBI Ombudsman reference:
B20: Mentioned an NPA/write-off status.
B15: Mentioned having too many live cards.

The main issue for me is the B20 (NPA) code. I do not have any loans currently written off or marked as NPA. I closed my only education loan back in 2023. And no write off (not a single) or missed payment in last 3 years.

Regarding the card count (B15): I had 12 cards active in October (1 is secured/FD-based, and one ICICI card is counted twice for the mastercard and amex variants). This seems manageable, but the NPA code is a major red flag that needs fixing.


What is the correct procedure to challenge this specific NPA reasons?

 

[CardMintz]

@RAMESH BABU N . Sir your guidance needed

 

[RAMESH BABU N]

NPA - Non Performing Asset

You say you don't have any NPA now and also said you closed your EL 3 years back.

Was the repayment of that EL irregular before it was closed ? Like missing monthly installments ? EVEN IF THE INTEREST REPAYMENT IS DELAYED FOR 2-3 MONTHS, it will be treated as a NPA. Of course, you must have paid it subsequently n closed the account later. That NPA stamp will stay.

Did you ask for any concession (and given by the bank - as a part of negotiation or settlement) at the time of closing that EL ? Did the bank chased you repeatedly to get the EMIs from you ? Have they sent any chasers to your address - in person or via post n courier ?

If such things have had happened in the past, then this B20 NPA code is the result of such delays. You can't change it now in the short run.

 

[Ric287]

Was the repayment of that EL irregular before it was closed ? Like missing monthly installments ? EVEN IF THE INTEREST REPAYMENT IS DELAYED FOR 2-3 MONTHS, it will be treated as a NPA. Of course, you must have paid it subsequently n closed the account later. That NPA stamp will stay.

Did you ask for any concession (and given by the bank - as a part of negotiation or settlement) at the time of closing that EL ? Did the bank chased you repeatedly to get the EMIs from you ? Have they sent any chasers to your address - in person or via post n courier ?

If such things have had happened in the past, then this B20 NPA code is the result of such delays. You can't change it now in the short run.

Yes Sir you are correct with your assumptions. I was not so finance literate back then, and simply followed the words of the bank manager who asked me to not pay a single rupees till i complete two years of work after my course. Yes i was an idiot who fell for it. And since the bank themselves were outdated they didn't have online facility or mobile app as late as 2020. My and my parents cibil dropped to 600s.

The loan was fully paid off in 2022.

Now is there a way to recover from it, maybe in the long run if short run is not possible?

 

[RAMESH BABU N]

Yes Sir you are correct with your assumptions. I was not so finance literate back then, and simply followed the words of the bank manager who asked me to not pay a single rupees till i complete two years of work after my course. Yes i was an idiot who fell for it. And since the bank themselves were outdated they didn't have online facility or mobile app as late as 2020. My and my parents cibil dropped to 600s.

The loan was fully paid off in 2022.

Now is there a way to recover from it, maybe in the long run if short run is not possible?

Things can n will improve only in the LONG RUN.

Ensure that ALL YOUR commitments are paid, well before the due dates. DO NOT DELAY EVEN ONE PAYMENT. DO NOT APPLY FOR MORE CARDS OR LOANS.

Count even 1 paisa - if you need to pay - PAY BEFORE THE DUE DATE.

 

[Ric287]

Things can n will improve only in the LONG RUN.

Ensure that ALL YOUR commitments are paid, well before the due dates. DO NOT DELAY EVEN ONE PAYMENT. DO NOT APPLY FOR MORE CARDS OR LOANS.

Count even 1 paisa - if you need to pay - PAY BEFORE THE DUE DATE.

Thanks very much