Refunds counted as Payment in 2023?

[credit_debit]

If you want peace of mind, just pay your generated bill, and forget about any refunds. If you think you would be willing to reach RBI Ombudsman if bank doesn't comply, you can pay the NET bill and go from there. Just think that you received the refund in the next month's statement and sleep peacefully 🙂.

The only problem with paying entire bill (without considering cashback) is we receive SMS from SBI stating that you have additional credit in your CC and we will refund that. Better than charges, but now banks refund the extra amount.

 

[SSV]

The only problem with paying entire bill (without considering cashback) is we receive SMS from SBI stating that you have additional credit in your CC and we will refund that. Better than charges, but now banks refund the extra amount.

Yes, it is only optional though.. we can opt for refund or leave it as it is...

 

[shrewdoc]

The only problem with paying entire bill (without considering cashback) is we receive SMS from SBI stating that you have additional credit in your CC and we will refund that. Better than charges, but now banks refund the extra amount.

That is good to know, but the bank in question is ICICI which accepts any extra payment and will mark as extra credits to your card. If that has recently changed, i don't know. But either way works, better to be safe then sorry.

 

[SSV]

That is good to know, but the bank in question is ICICI which accepts any extra payment and will mark as extra credits to your card. If that has recently changed, i don't know. But either way works, better to be safe then sorry.

A distinguished characteristic feature of a GYANI..... 🫡 🫡

 

[shrewdoc]

A distinguished characteristic feature of a GYANI..... 🫡 🫡

I am a newbie. New to the credit world. 🙃

 

[SSV]

I am a newbie. New to the credit world. 🙃

Doesn't matter... this is personal quality we are talking about... 😉 😉
GYANI is a GYANI whether he is a newbie or expert or PRESTIGIOUS , @4uziaul , what do you say guruji 😉 😉 ...

 

[Piyush_Jaiswal]

Pay the full amount and get the refund in your bank account if any excess balance is there. It is as simple as that. Peace of mind is really important. If you have so much time and can tolerate SBI Cards, then it's your choice.

I personally find RBI very dumb in making of this rule. If they start considering refunds as payment then it would be much easier for anyone to rotate money without charges.

eg. I have 1 lakh Credit Limit. I used 20k and statement generated with 20k due amount. What if I spend 20k again on Amazon/Flipkart and then immediately cancel it. The refund will be received within 2 days. Now if they consider refunds as payment, they will consider this refund as payment of previous due amount and the 20k transaction done on Amazon will be billed on subsequent month's statement, which will delay the need of actual payment by more than a month. You can keep doing this infinitely. 😂

But the banks are smart, they know this loophole, that's why they don't consider refunds as repayment.

 

[deep@vie]

Hi, I recently booked trains on Amazon Pay using my Amazon Pay ICICI Credit card on 30 July & received 90% refund after cancellation charge deductions.
But the refunds were credited after my bill generation. Do I need to pay the full bill amount?
I know about the RBI clause point 10 (e), which states that refunds are counted as payments if credited before the due date. But SBI cards don't follow that rule even in May/June 2023 because they charged me FIN Charge on Retail since they don't count Refund towards bill payment.
Someone, please clarify. I don't want to pay Interest again. (The amount is 30k for IRCTC, total bill 34k, 4k I have paid)

This stunt is dangerous for your finance but keep an insurance by paying atleast MAD,otherwise your CIBIL will be down by 70 to 100 points in no time

 

[deep@vie]

This stunt is dangerous for your finance but keep an insurance by paying atleast MAD,otherwise your CIBIL will be down by 70 to 100 points in no time

After paying MAD,be ready for paying the interest on whole outstanding amount which can be upto 42%,may be more.
It can only save your CIBIL.

 

[deep@vie]

Hi, I recently booked trains on Amazon Pay using my Amazon Pay ICICI Credit card on 30 July & received 90% refund after cancellation charge deductions.
But the refunds were credited after my bill generation. Do I need to pay the full bill amount?
I know about the RBI clause point 10 (e), which states that refunds are counted as payments if credited before the due date. But SBI cards don't follow that rule even in May/June 2023 because they charged me FIN Charge on Retail since they don't count Refund towards bill payment.
Someone, please clarify. I don't want to pay Interest again. (The amount is 30k for IRCTC, total bill 34k, 4k I have paid)

A casestudy,I remember a friend didn't pay a bill of SBIcard of 2800 in March,2022 as he received an refund of 4k,his Cibil got down by 70 points,his CIBIL used to be between 790 to 800. For last 1yr,it is below 750,not crossing 750.
Have raised with SBIcard & have done everything he could have but nothing happened.
So be cautious ⚠️

 

[Card_Crafter]

As suggested by others already, Just pay the entire due amount and opt for refund of excess credit or leave it as it is to get adjusted in the next statement.

Bank bhi KHUS, customer bhi KHUS.

 

[deep@vie]

As suggested by others already, Just pay the entire due amount and opt for refund of excess credit or leave it as it is to get adjusted in the next statement.

Bank bhi KHUS, customer bhi KHUS.

Yes, that's the best & ideal approach

 

[srikant]

As suggested by others already, Just pay the entire due amount and opt for refund of excess credit or leave it as it is to get adjusted in the next statement.

Bank bhi KHUS, customer bhi KHUS.

Exactly! This time your transaction size is perhaps relatively large -- most of the times after refund AND paying (full) bill, we still have enough expenses to be a positive bill amount in the next statement. Even so, you pay the whole thing by due date - if bank refunds, fine; if bank gives negative bill next time -- and again and again, until you spend enough to turn it positive, also fine.

In fact, I'm asking for ICICI's Sapphiro Amex activation offer which should be giving me INR 750 cashback, but my previous statement is only INR 100. I'm going to use my ICICI card to pay an insurance premium (which I normally use another card for) to ensure that my INR 100 payment won't result in negative balance etc. Better not to "lend" to your bank for too long either 🙂

The only exception I make to paying full bill (when I have refunds after getting the bill) is when I have "autopay" for that card. E.g., on my IDFC card I have autopay enabled, and it subtracted refunds from the bill amount when auto-debiting.

 

[SohailAhmad]

Hello, I have a question on the same topic, so will these refunds be considered as payments and reported to Income Tax Department if my payment goes above 10 Lakhs in a FY?
For Eg. The total payments received on my credit card is 11 lakh for a year, out of which 2 lakh is in refunds from different merchants, will bank report my payment to IT Department as it’s above 10 lakh including refunds or they won’t because actually payment from my side is only 9 lakhs?
Would really appreciate some insights here, thank you. 😊

 

[deep@vie]

Refunds are
not considered as payments.

Hello, I have a question on the same topic, so will these refunds be considered as payments and reported to Income Tax Department if my payment goes above 10 Lakhs in a FY?
For Eg. The total payments received on my credit card is 11 lakh for a year, out of which 2 lakh is in refunds from different merchants, will bank report my payment to IT Department as it’s above 10 lakh including refunds or they won’t because actually payment from my side is only 9 lakhs?
Would really appreciate some insights here, thank you. 😊

 

[insight]

I had faced this same issue with SBI Cashback card couple of months back. Bill amount was 53k, and there was a refund of 10k after bill date but well before due date. I paid the balance 43k plus some 1k extra before the due date, but they still charged me fin charges. I raised a complaint quoting the RBI regulation, but they refused to reverse the charges. Escalated to NO, PNO also threatening to complaint to RBI, still same stupid copy paste answer. After that I was about to complain with the RBI Ombudsman but saw that there's another CS Head for escalating the query, so thought why not check if atleast these guys have any idea about RBI regulations before going to the Ombudsman.

Unsurprisingly, nothing was different. One person called and explained that as per internal policy refund is not considered as payment and that you have to make the payment of total amount due. I told that your internal policy is fine, but what about RBI regulations, is it not applicable to you? She was again repeating same dumb thing and responding as if she didn't even hear the word RBI. Whatever I ask, she says the same thing again. I told, understood and cut the call.

Raised a complaint with RBI after this, in one week time entire finance charges plus GST was reversed. No questions asked.

So, please don't listen to these stupid SBI customer care people, PNO, CS Head and what not, just looting people's hard earned money. Raise a complaint with the Ombudsman.

Interesting ordeal.

 

[seekndestroy99]

Depends from bank to bank. PNB didn't count it as payment, I paid less and they levied finance charges. Had to file an RBI Ombudsman case to get it reversed.

 

[parasf]

Hi, I recently booked trains on Amazon Pay using my Amazon Pay ICICI Credit card on 30 July & received 90% refund after cancellation charge deductions.
But the refunds were credited after my bill generation. Do I need to pay the full bill amount?
I know about the RBI clause point 10 (e), which states that refunds are counted as payments if credited before the due date. But SBI cards don't follow that rule even in May/June 2023 because they charged me FIN Charge on Retail since they don't count Refund towards bill payment.
Someone, please clarify. I don't want to pay Interest again. (The amount is 30k for IRCTC, total bill 34k, 4k I have paid)

As per my experience,
Sbi, icici, axis, hdfc no one count refund as payment.

So if your bill is generated, and after that you got refund, then you must have to pay full bill amount.
Else you may charged interest by bank, n it will very heavy

 

[seekndestroy99]

I had to file an RBI Ombudsman case with regards to PNB. Had received Starbucks offer cashback, I paid ₹ 500 less than the amount due. They charged ₹ 1.2k finance charges. They weren't budging until RBI pitched in. According to RBI Guidelines, any sort of credit has to be adjusted from the amount due even post the bill generation, but not all banks follow it.

 

[HVS]

Hi all,

Need an advice from TF community.
I made a transaction of around 60k on agoda through my Amazon ICICI card. After bill generation I was getting a better deal so I cancelled the booking and booked again using same card. The refund got settled the next day of cancellation. I contacted customer care and they told me the refund has been considered as payment and you only need to pay the remaining balance of around 3k. Same was showing in net banking portal of ICICI. 2 days back it triggered autodebit and debited the refunded amount. Today I told them to reverse the transaction as I already paid full amount as told by care executive and net banking portal was also showing 0 amount due.

The care executive is saying that the refunded amount has been adjusted against your spends this month and cannot refund the amount.

I have lodged a complaint with him to check for the earlier call recording and he told me that they will call me back in 5 days.

Can I do anything else in this case or should I let go?