Axis Bank guilty of service deficiency; consumer panel orders fee waiver, reward adjustment
HYDERABAD: The District Consumer Disputes Redressal Commission–I, Hyderabad, has held Axis Bank Limited deficient in service for blocking a customer’s credit card without adequate evidence and failing to address his grievance. The Commission directed the bank to adjust reward points and waive fees while settling the outstanding dues of the cardholder.
Commission finds no proof of alleged misuse of credit card
The order, pronounced on February 23, 2026, relates to a complaint filed by advocate Manchikanti Venkata Ramana against Axis Bank and its officials over the blocking of his Reserve credit card and non-adjustment of benefits.
Ramana stated that he obtained the bank’s “Reserve Credit Card” in November 2022 with a credit limit of ₹9,00,000 and paid a joining fee of ₹50,000 plus ₹9,000 GST. He claimed that he had accumulated 1,74,955 Edge reward points, equivalent to ₹34,991, while using the card regularly until November 2023.
According to the complaint, the bank blocked the card in December 2023 without prior notice and failed to credit the reward points or waive the annual fee, despite his eligibility after spending ₹25,00,000 in the preceding year. Ramana said he paid ₹2,54,202 towards dues and was willing to settle the remaining amount after adjustment of rewards and fee waiver.
The bank contended that the card had been used for non-personal or commercial transactions through repeated high-value payments on online gateways. It argued that a show-cause notice was issued seeking documents, and that the card was blocked after the complainant failed to respond.
Panel orders adjustment of dues and correction of CIBIL record
The Commission observed that the bank failed to place any documentary evidence showing misuse of the card or proof that a show-cause notice had been served. It noted that the blocking of the card appeared to be based on assumptions.
“In the absence of concrete and conclusive proof, the blocking of the card is not in consonance with the terms and conditions,” the Commission said, adding that the bank’s failure to properly address the grievance amounted to deficiency in service.
The panel directed Axis Bank to:
Adjust ₹34,991 in Edge reward points and ₹50,000 annual fee waiver against the outstanding dues of ₹6,77,940.79.
Accept the balance payment from the complainant after such adjustment.
Close the credit card account after settlement.
Assist in correcting the complainant’s CIBIL credit score.
Pay ₹10,000 as litigation costs.
The Commission gave 45 days for compliance, failing which the bank must pay an additional ₹50,000 penalty.
