Customer Receives Rs 3.2 Lakh In Compensation After Bank Delays Credit Card Closure

A credit card user received a hefty Rs 3.21 lakh compensation after a major private bank failed to process their card closure requests in time. In a now-viral Reddit post titled, 'Got Rs 3.21 lakh compensation from Kotak Mahindra Bank for not closing my credit card', the user detailed that they sought to close two credit cards in May last year after the bank reduced the credit limit from Rs 1 lakh to Rs 10,000. Instead of closing the cards, the bank levied an annual fee, prompting the user to reach the higher authorities, which resulted in the settlement amount.

"In May 2025, I emailed requesting closure of my two credit cards (Kotak Myntra & Kotak Mojo Platinum). Reason: the bank had reduced my credit limit from Rs 1,00,000 to Rs 10,000," the user wrote in a Reddit post, adding that they sent two reminder emails but received no response from the bank.

"Fast forward to April 2026, during an audit of my accounts, I noticed a charge of Rs 1,180 (annual fee / final settlement). When I raised this with the bank, I was told that the card was never closed."

After raising the issue, the bank said the cards were never closed and thus ensued another round of sending emails without any response. Frustrated, the user escalated the complaint to the Banking Ombudsman, prompting the bank's nodal offier to approach them.

"The bank's nodal officer called me and said: “It's your mistake. Closure requests are not accepted via email, you should have called". But I had already submitted a written closure request. Sent follow-ups. Received no response from the bank."

Just when it looked like the case had gone cold, the user said they received a message stating that a compensation of Rs 3,21,000 had been deposited in their bank.

In a follow-up comment, the user highlighted that RBI offers Rs 500 each day if there is a delay in the closure of the cards.

"That charges also got reversed. You might know the RBI guidelines on the delay in closure of the card. Rs 500/- each x 2 cards. Request was raised on May 23 and card got closed on April 18, so 321 days x1000 = 321,000."

Check The Viral Post Here:

Got ₹3.21 lakh compensation from Kotak Mahindra Bank for not closing my credit card
by u/ruhaannnn in CreditCardsIndia

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'You Are So Lucky'

As the post gained traction, social media users lauded the credit card holder for utilising the proper channels to receive the significant compensation amount.

"Damn, you're so lucky. My claim got rejected because I don't have a physical copy of my written closure form. It's been over 5.5 years. Must have been a lot of money," said one user, while another added: "Lmao, congrats. People won't be able earn this amount via cashbacks. Enjoy."

A third commented: "I also have a similar problem right now where I denied the renewal of card by clicking on the link bank sent me. They still sent me the card and charged annual fee. Now they have reverted the charges after my complaint to bank ombudsman and closed the card."

A fourth said: "I raised closure on 14 Feb 2025, they closed it on 6 Dec 2025. Have raised a complaint to RBI. Waiting for a reply."