How do I dispute wrongful charges or denied reward points on my credit card?

Question

My credit card statement shows charges I never authorised and the bank has also cancelled reward points I earned without explanation. I want to know how to get these reversed. I have been reading conflicting things online and I would like to understand what Indian law actually says about this, which Act and Section applies, what the realistic timelines and costs are, and what I should be doing right now to protect my position. If the matter can be resolved without litigation I would prefer that route, but I want to know what my rights are before I agree to anything or sign any document.

MyVakeel Legal Desk · Accepted Answer

How do I dispute wrongful charges or denied reward points on my credit card? is governed in India primarily by RBI Master Direction on Credit Card and Debit Card Issuance and Conduct Directions 2022, Banking Ombudsman Scheme 2006 (now RB-IOS 2021), Consumer Protection Act 2019, Section 2(11) and Payment and Settlement Systems Act 2007, Section 18. The short answer is set out below, followed by the practical steps most people in this situation need to take. Read it alongside the specific provisions named, because the exact relief available to you turns on the facts you can prove on paper.

The RBI Master Direction on Credit Card Conduct 2022 requires banks to disclose all charges, interest computation methods and reward point terms transparently, and any charge not disclosed at issuance cannot be unilaterally levied later.

A cardholder who disputes a transaction in writing must receive a provisional resolution or explanation from the bank within the timeline set by RBI directions, failing which the disputed amount cannot be treated as due and no penal interest can accrue on it.

Unilateral forfeiture of accumulated reward points without following the disclosed terms and conditions of the reward programme is an unfair trade practice and deficiency in service under Sections 2(11) and 2(47) of the Consumer Protection Act 2019.

The Reserve Bank - Integrated Ombudsman Scheme 2021 allows a cardholder to file a free complaint against the bank for unresolved billing disputes, and the Ombudsman can direct reversal of wrongful charges with compensation for loss of time and harassment.

Under the Payment and Settlement Systems Act 2007, the bank as a system participant is accountable for the integrity of transaction processing, which supports a claim where charges arise from a technical or processing error.

What to do next: 1) Raise a written dispute with the bank's credit card division within the statement dispute window, referencing the specific transaction; 2) Ask for the reward programme terms in writing to check whether forfeiture was justified; 3) Escalate to the bank's nodal grievance officer if the first response is unsatisfactory; 4) File a complaint with the RBI Integrated Ombudsman or the consumer commission for reversal and compensation.

If the other side has already issued a notice, filed a case or set a deadline, treat the matter as time-sensitive — most remedies under RBI Master Direction on Credit Card and Debit Card Issuance and Conduct Directions 2022 carry limitation periods, and a delay you cannot explain weakens an otherwise strong case. You can post the details on the MyVakeel forum for a practising advocate to review, or book a paid consultation with a Bar Council verified lawyer in this practice area.