Is It compulsory for Banks to give Reason Of Rejection of Credit Card Facility to Customer?

POSTED BY Gaurav Basutkar ON July 14, 2012 9:35 pm COMMENTS (8)

If I apply for some Credit Card or Loan and my application gets rejected,is it mandatory for the Bank or Financial Institution to provide me EXACT reason for DECLINE OF MY APPLICATION?
Are there any specific guidelines given by RBI to banks to inform the EXACT reason of application rejection? Can bank deny to provide the exact reason? What action I can take if they deny to give a EXACT SPCEFIC REASON for my application rejection?

8 replies on this article “Is It compulsory for Banks to give Reason Of Rejection of Credit Card Facility to Customer?”

  1. Tejas says:

    I am facing a similar issue with ICICI Bank. Can I do anything about it?

  2. Gaurav Basutkar says:

    Dear Sir,
    I have sent my conntact details at and mentioned the refference no given by you in subject line as well

    1. Rajesh R says:

      Hi Gaurav,
      Please update what happened finally. Could you get the clear reason from ICICI bank?

      And @Ashal:
      As far as I know it is mandatory for the banks to inform the customer of the specific reason for rejection for application for credit(loans/credit card).
      Please refer to RBI Guidelines on Fair Practices Code for Lenders:

  3. ICICI Bank Care says:

    Hi Gaurav,

    Please send us your contact details at and we’ll get back to you soon. Kindly refer “3197147” in the subject line.

    ICICI Bank Customer Service Team

  4. Gaurav Basutkar says:

    Is there an way to confirm whether my are is falling in Negative Area of ICICI Bank?

  5. Gaurav Basutkar says:

    Offcourse I have checked my CIBIL Score.
    My CIBIL Score at prsent is 807 out of 900 which is considered to be near excellent
    Not only that my Equifax score is also 924 out of 999
    Being a doctor by profession,with a salary of Rs 45000 per month and not holding any other Loan,besides a Credit Card of HDFC Bank without a single despute with DPDS in my CIR showing 000 since I took card,I could find no reason for my Card Denial by ICICI Bank.
    They dont give any clear reason for card reason.This is 2 nd time in last 9 months that they have declined my application withoout giving any EXACT reason.
    Kindly tell me what action I can take.I do accept its their right to issue Credit Card.But I feel it my right as well to know exact reason for my card denial!!!

    1. Dear Gaurav, in case you are interested to go with an ICICI credit card due to any personal reason, you may opt for instant credit card issued against a FD with ICICI bank.

      One possible reason of card application denial – may be your residential area is falling in no service or negative zone as per bank’s policy.



  6. Dear Gaurav, instead of focusing on denial & reason behind it. please check your CIBIL score first. This may be a possible reason. Banks are not forced by RBI to reveal the exact reason of denial.



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