SBI refused to close higher fee credit card given to woman who asked for a cheaper one, charged Rs 2,999 instead of Rs 499, ordered to pay Rs 50,000

A Delhi consumer commission has ordered SBI Card to pay Rs 50,000 to a cardholder who was given a credit card with a higher annual fee than she asked for, and then could not get it downgraded or closed. The card carried a yearly fee of Rs 2,999 plus GST, against Rs 499 plus GST she says she was offered.

According to her complaint, she had opted for an SBI Simply Click credit card carrying an annual fee of Rs 499 plus GST. However, she said she received an SBI Club Vistara card with an annual fee of Rs 2,999 plus GST.

She told the commission she had not used the card and contacted SBI Cards to switch to a lower-fee option. Her request was not processed, prompting her to pursue the matter before the consumer forum.

What Happened?

The cardholder says she was offered a credit card with a yearly fee of Rs 499 plus GST. She says she had picked the Simply Click option. According to her complaint, an agent of SBI Card took her biometric KYC for a Club Vistara card, a different product. A card with a credit limit of Rs 73,000 was then issued in her name.

She later found the card carried a fee of Rs 2,999 plus GST, about six times what she expected. A bill dated 3 August 2023 showed an annual fee of Rs 2,999 and GST of Rs 592.32. She contacted the company by phone and email about the wrong card, and later sent a legal notice.

She asked for Rs 1 lakh as compensation and Rs 15,000 towards litigation costs. Her complaint was filed on 3 November 2023. She told the commission she had not used the card. To back her claim, she filed an affidavit as evidence, along with a copy of her card statement and copies of emails sent to SBI Card.

What Did SBI Card Say In Its Replies?

Her first email, on 4 August 2023, told SBI Card she had not used the card and wanted it changed to a Simply Save card, with charges applied accordingly.

SBI Card replied on 10 August at 7 am. It said its representatives could not reach her on her registered mobile number. It added that upgrading or downgrading a card needs OTP validation, and asked her to either take its call or phone helpline number 39020202.

She wrote back at 10.27 am the same day. She said she had called the helpline as advised, but the change was not done. SBI Card sent the same reply again. On 11 August, she told the company the helpline had said many times that the card cannot be changed and the fee cannot be waived. She also said she had complained to the RBI Ombudsman.

On 18 August, SBI Card wrote that it could not process the downgrade. No reason was given. She sent a legal notice by email the same day.

Notice was later issued to SBI Card in the case. Its written statement was not taken on record because it was filed late, as per an order dated 24 October 2024. The commission noted that SBI Card neither appeared nor rebutted her claims.

What Did The Commission Say?

The commission said it was evident she had received a card she wanted to change. She was asked again and again to call the helpline, and she did, many times. SBI Card later said the downgrade could not be processed, without giving any reason.

On closure, the commission said it was “difficult to comprehend” why the card was not closed if it could not be downgraded. It then found SBI Card guilty of deficiency in service.

While reaching its view, the commission referred to a 12 February 2026 order of the Karnataka State Consumer Disputes Redressal Commission in a case against Standard Chartered Bank. That order discussed RBI guidelines of 21 April 2022 on closing credit cards. Under those guidelines, a closure request must be honoured within seven working days, subject to payment of dues. Delay attracts a penalty of Rs 500 per calendar day, payable to the cardholder, until the account is closed.

What Did The Commission Order?

The commission gave three directions. SBI Card must close the credit card. It must generate a bill as on 4 August 2023, the date she asked for the change, if the old bill has not already been paid. It must also pay Rs 50,000 as compensation.

She had sought Rs 1 lakh as compensation and Rs 15,000 for litigation costs. The commission awarded Rs 50,000. Its order does not mention a separate amount for litigation costs.

SBI Card has 60 days from the date of the order. If that deadline is missed, the entire order will carry interest of 7 per cent from the date of order until payment is made. The commission also directed that the order be sent to both sides free of cost.