[Resolved]  HDFC Bank — HDFC Credit Card - Cancelled on unexplanatory grounds

Address:

Mumbai City, Maharashtra

Hello,

I hold a HDFC Bank credit card (Name: Pranav Sarpotdar) for past 2 years. In the month of May 2013 I completed a transaction online and due to some offer I got a cash back of INR 1625. In the same month (after the transaction date) I get a SMS from HDFC Bank saying that due to no activity on your card for a very long time, the card will be cancelled. I called up the customer care and spoke to them and got a response saying that the KYC needs to be checked and that's why I have got this message.
For which I refused to submit as that was not the communication in the SMS.

On June 13, 2013 i received a letter(dated 31st may 2013) from the bank saying that due to inactivity on your card for a considerable period your card has been closed and all benefits, privileges and services attached to the card have been withdrawn permanently. ( I am assuming that the credit of INR 1625 has also been withdrawn). I called up the customer care on 14 June 2013( complaint no. [protected]) and asked for a explanation. I was shocked when the executive told me that "how can your card be cancelled as you have done transaction one month back and also made the payments in the same month". But after making me hold for sometime she tells me that since you have not used your card before this transaction for a long period it stands cancelled. She tells me to drop a letter to nearest bank / ATM explaining this and the bank will give a solution.

My questions are:
1) Why should i take the trouble of even going to a ATM when technically i was not inactive and it is not my fault. Will the bank come to my house or office for a credit card payment collection if I am unable to go to them.
2) If I have used the card in the month of May 2013(first or second week), how can the Bank issue a letter dated 31st May 2013 saying that the card is not being used for a considerable period.
3) Why are the Bank executives asking for KYC documents / Letter from me saying that I need to submit these documents as the card has been temporarily blocked. Whereas the letter clearly says that all the benefits and privileges have been withdrawn permanently.
4) If in case there was an outstanding amount on my card, would the bank had withdrawn all the debits as well due to the same reason.

OR

5) is it that the Bank does not want to let me use my credit of INR 1625.