A credit-card holder has reported an incident where he incurred a late payment fee exceeding Rs 1,200 due to a shortfall of just 46 paise on his bill. Dr Samir Kagalkar posted about his experience on X, tagging HDFC Bank, and described how he had paid Rs 10,649 against a total bill of Rs 10,649.46, leaving only 46 paise unpaid. This seemingly minor discrepancy led to significant charges, raising questions about the bank’s late-fee policy.

Kagalkar expressed his frustration in the post, stating, “You sent me a credit card bill for Rs 10,649.46. By error – I paid Rs 10,649.00 (missing out 46 paise), and you have slapped me with over Rs 1,200 late payment charges?” He is seeking the reversal of these charges, highlighting the disparity between the shortfall and the ensuing penalties.

Regulatory Guidance on Transaction Rounding

The 46-paise shortfall is significant in light of the Reserve Bank of India’s (RBI) guidance on rounding off transactions. According to the RBI, amounts should be rounded to the nearest rupee, meaning that transactions ending in less than 50 paise should be disregarded. For example, Rs 10,649.46 would effectively be rounded down to Rs 10,649, and this principle applies across various transaction types.

However, this guideline does not explicitly dictate how credit-card accounts must be managed regarding payments. While the rounding principle may suggest that less than one rupee does not impact the total payable amount, it does not clarify the bank’s responsibility for assessing late fees when such minor amounts are involved.

Furthermore, the RBI has established regulations concerning credit card late-payment charges. These rules stipulate that late charges can only be applied if the account is overdue by more than three days and that such fees should only be based on the outstanding amount after the due date.

Customer Appeals for Charge Reversal

Dr Kagalkar has formally requested HDFC Bank to reconsider the late fees imposed. He raised concerns over the harsh penalties for what he perceives as a negligible unpaid amount. In his post, he questioned the bank’s commitment to addressing customer concerns promptly, stating, “Do you care to have this reversed ASAP?”

The situation has resonated with other social media users, prompting them to share similar experiences with credit card charges. One user commented that Kagalkar should consider contacting the Banking Ombudsman at the RBI if the issue remains unresolved. Another individual recounted a comparable incident involving charges from SBI after attempting to cancel a credit card.

While these additional accounts reflect individual cases and do not indicate a widespread issue, they suggest that concerns regarding credit card charges are on the minds of many customers. Dr Kagalkar’s case serves as a focal point for discussions about fairness in banking practices, particularly in instances of minor unpaid amounts leading to substantial penalties.

Long or Short, get news the way you like. No ads. No redirections. Download Newspin and Stay Alert, The CSR Journal Mobile app, for fast, crisp, clean updates!

App Store –  https://apps.apple.com/in/app/newspin/id6746449540 

Google Play Store – https://play.google.com/store/apps/details?id=com.inventifweb.newspin&pcampaignid=web_share