How to close a credit card properly: RBI rules and CIBIL impact

You can ask your bank to close a credit card through its app, website, helpline or email. RBI requires banks to honour the request within seven working days, subject to paying all dues. If they delay and you owe nothing, they owe you ₹500 a day. Learn how to clear dues, save rewards, and protect your CIBIL score.

By Qrates research desk · 2026-11-01

You can ask your bank to close a credit card through its app, website, helpline or email. The Reserve Bank of India requires card issuers to offer several channels for closure requests, such as a helpline, dedicated email, IVR, a website link, internet banking or the mobile app. Banks must honour your closure request within seven working days, subject to payment of all dues. If they delay the closure beyond this deadline and you have no outstanding balance, they must pay you ₹500 for every calendar day they are late.

What you need before you start

You must clear your total outstanding balance for the closure to go through. If you have pending dues, the bank must give you the details when it receives your request, without waiting for the billing cycle to end (Reserve Bank of India (Commercial Banks - Credit Cards and Debit Cards: Issuance and Conduct) Directions, 2025). The days you take to pay them are not counted in the seven working days. ICICI Bank and HDFC Bank both tell customers to clear all bills, EMIs and charges before they ask for closure. How a running EMI is settled can vary, so ask your bank for the final amount.

Redeem all your reward points before you initiate the closure. Rules differ by issuer. ICICI Bank says unredeemed points lapse once the card is cancelled. HDFC Bank's terms for some cards allow redemption for 30 days after closure, only for products or vouchers, and then the points lapse.

Cancel any auto-debit instructions linked to the card. This includes utility bills, subscription services, and insurance premiums. If a merchant attempts to charge a closed card, the transaction will fail.

Download your latest credit card statements for your records. You may lose access to the credit card section of your net banking portal once the account is closed. Having the final statements helps you prove that you cleared all dues if a billing dispute happens later.

Steps to close a credit card online

RBI's directions name a prominent website link, internet banking and the mobile app among the channels that card issuers can offer, and say issuers cannot insist on a postal request. The exact route and menu names vary by bank. HDFC Bank, for example, lists MyCards, EVA, PayZapp and its branches. SBI Card lists writing to it or calling its helpline.

Log into your bank's official mobile app or net banking website.
Navigate to the credit card section and look for the 'Service Requests', 'Card Management', or 'Manage Cards' menu.
Choose the credit card closure option.
Select a reason for closing the card, if asked.
Submit the request and save the service reference number shown on the screen.
Cut the physical credit card diagonally, as SBI Card tells its customers to do after submitting the request. If you have also lost your card, you should block a lost debit card, credit card and UPI in India immediately to prevent unauthorized usage.

How long it takes and what it costs

The credit card cancellation process takes a maximum of seven working days from the date you submit the request. If you have dues, the days you take to clear them are not counted.

RBI's directions do not prescribe a closure fee. Closure is conditioned on settling all dues. Separately, if your bank changes a charge to your disadvantage, you can surrender the card without any extra charge for closure, subject to paying all dues (para 23(7) of the 2025 directions). Check your bank's terms for anything else.

Any credit balance left after closure must be transferred to your bank account. The bank must notify you about the closure by email, SMS or similar means, and report the closure to the credit bureaus. RBI's directions do not mention a No Objection Certificate. HDFC Bank advises getting written confirmation of the closure, so ask your bank for it.

If it does not work

Your bank may call you after you submit a closure request and offer reasons to keep the account open. If you do not want these offers, state clearly that you want to proceed with the cancellation.

If the card is not closed within seven working days, the bank owes you a penalty. Para 19 of RBI's 2025 directions says the bank must pay you ₹500 for every calendar day of delay until closure. This rule only applies if your outstanding balance is zero.

You can claim this penalty by writing to the bank through its grievance channel. Include your original closure reference number and the date of your request.

You must complain to the bank first. You can then complain to the RBI Ombudsman against a bank or loan app under the Reserve Bank - Integrated Ombudsman Scheme, 2026, if the bank gives no reply within 30 days or if you are not happy with its reply. RBI says the 30 days can be longer where RBI, NPCI or card network timelines apply. You have 90 days to file, counted from when the bank's timeline ends or from its last communication, whichever is later. File online at cms.rbi.org.in. The RBI helpline 14448 gives guidance and status updates, but you cannot file a complaint through it.

How to close a credit card without affecting your CIBIL score

Closing a credit card reduces your total available credit limit across all your accounts. If you continue to spend the same amount on your other active cards, your credit utilization ratio will increase. HDFC Bank says this can hurt your score. CIBIL's guidance is that keeping card spend to 30 percent of your limit is a healthy ratio (TransUnion CIBIL).

For example, if you have two cards with a limit of ₹1 lakh each, your total limit is ₹2 lakh. If you spend ₹50,000 a month, your utilization ratio is 25 percent. If you close one card, your total limit drops to ₹1 lakh. Your ₹50,000 spend now equals a 50 percent utilization ratio.

To protect your score, you can ask the bank whether it can move the credit limit from the card you are closing to another card you hold with the same bank. This would keep your total available credit limit the same. Not every bank may agree.

Credit history also matters. CIBIL says a longer credit history is typically seen as a sign of stability, and advises that keeping old accounts with a good payment record open is beneficial (TransUnion CIBIL). HDFC Bank says closing a card reduces the average age of your active accounts, which may lower your score. CIBIL also says closing may have only a minimal impact in some cases, and the closed account continues to show in your report. Confirm the bank has actually closed the account, because CIBIL warns that charges can keep rising if it has not.

You can check the Qrates directory to find credit score apps to monitor your CIBIL score after the closure process. You can also compare credit cards if you are closing an old card and want to see other reward rates.

FAQs

How many days does it take to close a credit card?

RBI's directions for commercial banks say a closure request must be honoured within seven working days, subject to payment of all dues. If you have dues, the days you take to clear them are not counted.

Does closing a credit card affect CIBIL score?

It can. Closing a card reduces your available credit limit, which can raise your credit utilization ratio. HDFC Bank says it also reduces the average age of your active accounts. The closed account continues to appear in your CIBIL report.

Can a bank reject a credit card cancellation?

Closure is subject to paying all your dues. If dues are outstanding, RBI says the bank must tell you the amount when it receives your request, without waiting for the billing cycle to end. It must then complete closure after you pay.

What happens to reward points when a credit card is closed?

It depends on the card issuer. ICICI Bank says unredeemed points lapse once the card is cancelled. HDFC Bank's terms for some cards allow redemption for 30 days after closure, only for products or vouchers. Redeem your points before you start, and check your own card's terms.

How to get an NOC after closing a credit card?

RBI requires the bank to notify you about the closure by email, SMS or similar means. RBI's directions do not mention an NOC. Ask your bank for written confirmation and keep it safe. If you are wondering penalty lagti hai kya for closing a card, RBI's directions do not prescribe a closure fee, but you should check your bank's terms.

The short version

RBI requires card issuers to offer several closure channels, such as helpline, email, website link, internet banking and app.
You must pay your total dues, including EMIs and charges, for the closure to go through.
Banks must honour the closure within seven working days, excluding the days you take to clear dues.
If the bank delays closure beyond this and you owe nothing, it must pay you a penalty of ₹500 per calendar day.
Closing a credit card can raise your credit utilization ratio and reduce your average account age, which can affect your CIBIL score.