RBI's strict rule: If a bank takes more than 7 days to close your credit card, you stand to gain—you'll get ₹500 daily..

It is a common experience that when you want to get a new credit card, banks call you up to ten times a day. However, when you try to close or cancel that same card permanently, banks often drag their feet, offer various incentives to keep you on board, and make you run from pillar to post for weeks.

If you are currently facing this issue or plan to close your card in the future, you should definitely be aware of this strict and useful rule from the Reserve Bank of India (RBI). According to RBI regulations, if a bank fails to close your credit card on time, it is liable to pay you a penalty (compensation) of ₹500 per day out of its own pocket.

What is the RBI's '7-day' rule?