General Studies · Banking Regulation & RBI Master Directions
A bank issues an unsolicited credit card to a customer, charges an annual fee, and reports a 'late payment' to CICs when unpaid. According to RBI Master Directions (2022), what is the liability of the bank?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The bank is liable only if the customer proves direct financial loss due to negative credit reporting.
- 2Non-return of the card within 7 days constitutes 'Deemed Consent' allowing all applicable charges.
- 3The bank must pay a penalty of double the amount of charges billed and immediately rectify the credit record with the CICs.✓
- 4The bank is only liable to reverse the annual fee and pay no compensation if sent to the correct address.
Correct answer
The bank must pay a penalty of double the amount of charges billed and immediately rectify the credit record with the CICs.
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