A Delhi consumer commission has directed SBI Cards & Payment Services Limited to close a woman’s credit card and pay her ₹50,000 in compensation after finding deficiency in service over its failure to resolve her request to change a card carrying a higher annual fee than the one she said she had chosen.
The District Consumer Disputes Redressal Commission, South-II, Delhi, comprising president Monika Aggarwal Srivastava and members Dr Rajender Dhar and Ritu Garodia, passed the order on a complaint filed by Neha Chaudhary.
Chaudhary had alleged that she opted for a ‘Simply Click’ credit card with an annual fee of ₹499 plus GST, but SBI Cards’ agent obtained her biometric KYC for a ‘Club Vistara’ card instead. The card issued to her had a credit limit of ₹73,000 and carried an annual fee of ₹2,999 plus GST.
A bill dated August 3, 2023 reflected annual fees of ₹2,999 and GST of ₹592.32.
Repeated Requests for Card Change
On August 4, 2023, Chaudhary emailed SBI Cards stating that she had not used the card and asked the company to change it to a Simply Save card while applying the relevant charges.
SBI Cards responded on August 10 that its representatives had been unable to reach her on her registered mobile number. The company said an upgrade or downgrade required OTP validation and asked her to either receive a representative’s call or contact its helpline.
Chaudhary subsequently informed the company that she had contacted the helpline but the card had still not been changed. On August 11, she said she had called several times and was told that neither the card could be changed nor the fee waived. She also told SBI Cards that she had approached the RBI Ombudsman.
On August 18, SBI Cards informed her that it could not process the downgrade request. Chaudhary sent a legal notice by email the same day.
The commission noted that she had repeatedly approached the company through email and its helpline, but was eventually informed that the downgrade could not be processed without any reason being given.
SBI Cards Did Not Rebut Allegations
The commission recorded that SBI Cards neither appeared nor rebutted Chaudhary’s allegations. Its written statement was not taken on record as it had been filed beyond the permitted period under an order dated October 24, 2024.
While deciding the complaint, the commission referred to a February 2026 ruling of the Karnataka State Consumer Disputes Redressal Commission concerning RBI directions dated April 21, 2022 on closure of credit cards.
Those directions provide that a card closure request should be completed within seven working days, subject to payment of outstanding dues, and require card issuers to offer multiple channels for making such requests.
They also provide for a penalty of ₹500 per calendar day for delay beyond seven working days where no amount is outstanding.
The Delhi commission observed on September 18 that it was difficult to understand why the card had not been closed if it could not be downgraded.
Commission Orders Closure and Compensation
Holding SBI Cards guilty of deficiency in service, the commission directed it to close Chaudhary’s credit card.
It also ordered the company to generate the bill as on August 4, 2023, the date on which Chaudhary had sought the change, if that bill had not already been paid.
SBI Cards was further directed to pay ₹50,000 to Chaudhary as compensation.
