Retired Bengaluru banker sues Axis Bank over credit card problems, wins Rs 7,000

The 65-year-old approached the RBI’s ombudsman office on February 3 after failing to get help from Axis Bank's customer care representatives. (AI generated image)

A retired banker from Bengaluru's BTM Layout has won Rs 7,000 in compensation from Axis Bank after his credit card was deactivated without notice, disrupting his monthly payments and streaming subscriptions, according to documents reviewed by the Reserve Bank of India’s ombudsman office.

Mohan, 65, had relied on his Axis Bank credit card to pay for entertainment services and other bills. But in December 2024, his transactions began failing, the Times of India reported. Initially dismissed as a network glitch by customer care, the problem persisted despite repeated attempts to re-add the card. Mohan later discovered that the card had been deactivated prematurely — and the replacement had been sent to his former workplace, Canara Bank, where he hadn’t worked in five years.

Attempts to update his address were met with demands for fresh KYC documentation, even though his residential address remained unchanged. Customer care responses were inconsistent, and no resolution was offered.

Frustrated, Mohan escalated the matter to the RBI’s ombudsman office on Nrupathunga Road on February 3, alleging service deficiency. In its response, Axis Bank admitted to a lapse in its internal process, citing a “technology gap” that led to the old credit card being deactivated before the new one was delivered and activated. The bank also conceded that insisting on KYC in this case was unnecessary, the publication reported.

The ombudsman concluded that the customer had suffered “avoidable inconvenience” due to the bank’s failure to follow proper procedures. On August 12, the ombudsman directed Axis Bank to compensate Mohan Rs 7,000 for the delays and lack of adequate response.

Following the directive, Axis Bank credited the amount to Mohan’s account and submitted proof of transaction to the ombudsman.