[Resolved]  Credit Cards — Private Banks misusing powers of posting individuals as defaulters with CIBIL

Private Banks misusing powers of posting individuals as defaulters with CIBIL


1. Apathetic attitude of Public Sector Bank i.e. State Bank of India towards applications under Right to Information Act. SBI openly fluting RBI guidelines.

2. Spiteful behavior and vindictive attitude of Private Bank (ICICI) in misuse of powers in listing people as defaulters with CIBIL (Credit Information Beau rue of India Ltd) without any reason.

3. Crux of the case

a) Private Bank issues a credit card in 2005 without the customers knowledge. The card is never received or used by the customer, the customer has neither applied for the same. After one year the Bank starts issuing Bills. After protracted correspondence and registered letters by the customer threatening legal action, the Bank reverses the Bills. But the officials of the Bank in an act of vengeance put the customer on the list of defaulter with Credit Information Bureau India Ltd (CIBIL).

b) Customer is unaware of this applies for a credit card with a Public Sector Bank i.e State Bank of India. The Bank rejects the application based on the information shared by member banks with CIBIL.

c) State bank of India replies to the customer that the decision of not issuing a card to him is a business decision but does not gives the real reason of rejection. The customer has protracted correspondence with Bank but of no avail.

d) Customer approaches Banking Ombudsman who replies that the non issuance of credit card does not fall within their purview.

e) The customer sends an application under RTI to State Bank of India but they stick to their earlier stand and do not divulge the reasons for non-issue of card.

f) Customer approached Central information commissioner who state that the Commission has held in one of its judgment that SBI Cards and Payments Services Ltd falls within the definition of Public Authority u/S 2 (h) of RTI Act, 2005 and should establish its own RTI regime or the parent Bank, i.e SBI should cover through their RTI set up. However the said judgment of the Hon’ble Commission has been stayed by the Hon’ble Delhi High Court hence the matter is sub-judice.

g) Directs the customer the approach SBI cards and Payment Services limited in accordance to the judgment of the Hon’ble Delhi High Court. And if the customer is not satisfied with reply of CPIO and Appellate Authority of that organization they may approach the commission.

h) Apart from flouting RTI, State Bank of India is also flouting the RBI instructions to Banks vide circular No RBI/[protected]/280 DBOD. No Lef. BC65/09/07.005/2006-07 dated March 6 2007 under para 5 of the circular

5) On a review, it has been decided that in case of all categories of loans irrespective of any threshold limits, including credit card application, banks/FI’s should convey in writing the main reason/reasons which in the opinion of the Bank/FI have led to rejection of the loan applications.





The rejection of the application has put the customer in great shock and disappointment and his financial creditability has come to stake. The fact that he has been posted as defaulter under all India List without any reason is a matter of great shame, now what are the avenues left for the customer either to bear with it that he is a broke and defaulter or fight for his right. Unlesss SBI gives in writing the reasons for rejection of application the customer cannot sue the Bank who has posted him as defaulter