Banking

Credit Card Disputes — Your Rights & How to Claim Chargeback

3 min read

Updated: January 2024

Disclaimer: This guide is for general educational purposes only and is not legal advice. Laws may vary by state and change over time. Consult a qualified lawyer for advice specific to your situation.

Credit Card Disputes — Your Rights in India

Your Basic Rights Under RBI Guidelines

The Reserve Bank of India (RBI) has issued clear guidelines protecting credit card holders:

  • Zero Liability: If the fraud happened without any negligence on your part, you bear ZERO liability
  • Limited Liability: If you reported fraud within 4–7 days, you have limited liability
  • Chargeback Rights: You can dispute any transaction within 30–180 days (varies by reason)

Common Reasons to Dispute a Transaction

  • Unauthorized transaction — you didn't make this purchase
  • Double charge — same transaction charged twice
  • Amount mismatch — charged more than the bill
  • Product/service not received — paid but not delivered
  • Defective product — received damaged/wrong item
  • Subscription not cancelled — charged after cancellation

Step-by-Step: How to File a Chargeback

Step 1: Act Quickly

Report unauthorized transactions within 3 working days for zero liability protection.

Step 2: Call Your Bank

Call the 24/7 helpline on the back of your card. Say specifically:

"I want to dispute transaction [amount] on [date] to [merchant] and request a chargeback."

Block the card if fraud is suspected.

Step 3: Submit Written Dispute

Send a written complaint to your bank with:

  • Transaction date and amount
  • Name of merchant
  • Reason for dispute
  • Supporting documents (receipt, screenshots, email correspondence)

Most banks have an online dispute portal — check your bank's app or website.

Step 4: Provisional Credit

Under RBI rules, banks must give you provisional credit (shadow reversal) within 10 working days while investigating.

Step 5: Resolution Timeline

Banks must resolve disputes within 45–90 days under RBI guidelines.

If Bank Does Not Resolve in Time

Escalate to the Banking Ombudsman:

  1. Visit bankingombudsman.rbi.org.in or cms.rbi.org.in
  2. File your complaint with all previous correspondence
  3. The Ombudsman is free and doesn't require a lawyer
  4. Resolution typically within 30–60 days

Important Tips to Protect Your Card

  • Enable SMS/email alerts for every transaction — free from your bank
  • Set domestic-only transaction limits in your bank app
  • Never share card details over phone, even with "bank staff"
  • OTP is your last protection — never share it with anyone
  • Use virtual card numbers for online shopping (available in most bank apps)
  • Check your statement every month

Zero Liability — Know the Rules

Scenario Your Liability
Bank's negligence Zero
Third-party breach, reported within 3 days Zero
Third-party breach, reported in 4–7 days Max ₹10,000 (depends on card type)
Reported after 7 days Per bank policy
Your own negligence (shared PIN/OTP) Full amount

Helplines

  • RBI Consumer Helpline: 14448
  • Banking Ombudsman: cms.rbi.org.in
  • Cybercrime (card fraud): 1930

Related Guides


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About This Guide

Category

Banking

Reading Time

3 min read

Language

English

Updated

Jan 2024

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