Finance, Forex and Investments

Indian bank laws on refusing someone's credit card application?

What does RBI(Reserve Bureau of India) stipulate for banks(nationalized and private) when they refuse someone's credit card application, though the person has never defaulted on any loan, provided all the required documents and has a decent income(more than 50K per month), has no loans etc.? Banks have refused my credit card application and not even providing me with the reason. HDFC bank refused me credit. Did not give me any reason. Sent a letter to Banking Ombudsman of Mumbai a week ago. Still, no response. In India, suing typically does not work Even SBI follows the same lamentable policies of refusing credit without any reason.

Public Comments

1. It is surprising why banks have refused a credit card for you. They are bound to give you valid reasons; you can even sue them for slack service. Send a registered letter to the concerned bank asking them to give valid reasons within 15 days and in the event of failure, write to the bank Head Office. You can approach HDFC bank who are very reasonable in processing applications and they give good reasons if they reject your application. Even Andhra Bank has a good reputation and effective customer care. Best wishes.
2. Overall, allowing credit in any form to anyone is simply the prerogative of any bank / lender. Reasons for "refusal or grant" could be countless. The banks are commercial entities and can act in the best of their own interests. Have a practical view in the situation and see for yourself that in times when banks are more than willing to have more and more good credit card customers, why there is refusal in your case? A level of income could be one of the eligibility conditions for a credit card but certainly it is not the only criteria. There are more points to satisfy a lender / bank. In your case, look at the whole dealing / transaction in a practical way and surely you can have an amicable solution to your satisfaction.