Misinformation on rupee billed credit card for non residents by domestic banks in India.

POSTED BY sidrana7 ON December 9, 2010 5:38 pm COMMENTS (3)

I hold an citibank credit card billed in Indian Rupees and proud of it. Recently Citibank customer service came back and said as per RBI process they can not issue domestic rupee credit cards to nri\’s.

excerpt from Citibanks reply

\”Please note that as per RBI if a customer stays is likely to cross 182 days, he will be classified as NRI for the financial year. As per process, we do not issue Domestic credit card to the Non Residential Indians(NRI).\”

My reply to Citibank \”Please have a look in the link from the RBI website and please help yourself with the RBI circular regarding the issue of domestic credit cards to nris and the settlement payments from nri\’s nre and nro bank accounts.
In my understanding of the RBI regulations there is NONE restrictions on issuance of domestic credit cards to nri/pio\’s. Hence I do challenge the so called process mentioned in your email.

As per this RBI circular issued in Dec 9 2002 domestic banks were allowed to accept payments from non residents nro and other accounts in addition to nre accounts towards settlement of rupee billed credit card payments. Non residents were allowed to have domestic rupee billed credit cards beofre 2002 , with payments coming from nre acocunts.

I like to ask here if any of the non-residents have come across such misinformed (as Citibanks case above) customer service issues?

Also I envisage this will help a few others to KNOW the fact in regards to rupee billed credit cards for non residents.

Best regards


3 replies on this article “Misinformation on rupee billed credit card for non residents by domestic banks in India.”

  1. sidrana7 says:

    OK. Matter resolved to my satisfaction and what I have stated above is correct.

    Citibank has responded back to me on this issue and cleverly avoided offering apology and usual sweet talk answer.

    Now if any of non residents get across similar dimwit customer service in regards to Rupee billed credit cards issued by domestic banks can use the RBI circular reference and educate the concerned bank’s customer service and sort the matter to their satisfaction.

    best regards.

  2. sidrana7 says:

    Thanks Senthil for taking a note here.

    For this case I do hold both rupee billed and uk billed cards. So the currency exchange is not that touched upon. thats incentive.

    The problem is when you get customer service which significantly lacks the understanding of the subject matter.

    And its everywhere, last month in UK some car insurers charged customers by 20% more for using winter tyres on their cars. The insurance advisory body has pointed this to call centres which proceeded based on alteration to standard vehicle. The car owners shouldnt have been charged additional insuranc premium but happened because of call centre’s lack of subject matter knowldge.

    Sorry for the bifurcation. Honestly its sheer grief when dealing with daft customer service.


  3. Senthil nathan says:

    Hi Siddharth,

    It is not really a GOOD idea to use India based credit cards in Foreign Countries as the Exchange Rate used by the Indian bank will be favorable to the bank and not to the customer.

    I faced the same issue with Icici bank and I had to cancel the credit card after 6 months of living in foreign country.

    Some of the foreign countries have a secured credit card offering which you can use during the initial period of stay till your credit history is established in the foreign country.

    Hope this helps.

    Best Regards,

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