RBI seemingly cannot Interpret its OWN Guidelines (HDFC Cc Case)

[desiviru]

@the fiasco I am of the opinion here that rewards redemption for statement cash is different from what RBI rules says. So banks here are well within their rights to adjust it in next statement because it is not a transaction based entry. It is rewarded for actual transactions and are not part of the transactions itself. Any refund full or partial are part of transaction but not these rewards.

Also, SBI never adjusts in current statement. They take it as a payment and shows it only in next statement. Adustment in current statement means your total due reduced by that much amount at first hand. Suppose you had a Rs.2000 txn with 100 cashback. Still this 100 will be adjusted as payment in next statement else we had due of 1900 irself firsthand. I hope you get my point here.

Same way when I redeem Millennia cashpoints in current statement, they adjust from another due in next statement or if no txn are there which is rare with me, the credit balance stands for those redemptions.

 

[Dr.Anand456Dr.Anand456 is verified member.]

DISAGREE. None of the rules set by a bank can override RBI guidelines. The rules have to be designed to be within the boundaries defined by RBI.

I respect your view, but allow me to clarify the context.

You're absolutely right that no bank rule can override RBI guidelines. However, it's important to understand that the RBI provides a regulatory framework within which banks are allowed to design their card features and operational processes — as long as they don’t violate any core principles set by the RBI.

In this particular case, HDFC Bank has clearly mentioned the cashback adjustment timeline in its MITC, and RBI has reviewed this matter. As per the response received, RBI found that HDFC’s process is in line with the Master Directions issued for Credit Card operations. That means the bank's policy is not overriding RBI guidelines, but rather functioning within them.

So while your point is correct in principle, in practical terms, banks have some flexibility under RBI's framework — and unless there's a clear breach or unfair practice, RBI does not interfere with every individual policy detail.