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Credit Cards

Credit Card Interest Rate Increased Without Notice

Your bank has increased the interest rate on your credit card without giving you 30 days prior written notice, or has applied a higher rate retroactively.

Applies to: All credit card issuing banksRBI/2022-23/128 — Credit Card Directions 2022

⚖️Your Rights Under RBI Regulations

At least 30 days prior written notice must be given before any interest rate increase.

You have the right to reject the new rate and close the card during the notice period without penalty.

Interest rate changes cannot be applied retroactively to existing outstanding balances.

💰 What You Can Recover

Refund of excess interest charged at the new rate during the notice period.

⏱ Response Deadline

30 days for written complaint response.

📋Step-by-Step — What to Do

1

Document the old rate, new rate, date of change, and date you received communication (if any).

2

Write to the credit card grievance cell demanding refund of differential interest during the notice gap.

3

File with RBI Ombudsman if unresolved.

🏛 Where to Escalate If Bank Doesn't Respond

RBI Integrated Ombudsman — cms.rbi.org.in

⚖️

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Governing RBI Circular
RBI/2022-23/128 — Credit Card Directions 2022
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