Holding Banks Accountable: My ₹5,000 Win Against IndusInd Bank’s Systemic Negligence

Introduction: Most bank customers accept a credit card rejection as “final.” But what happens when the bank rejects you based on false data, lies about their involvement, and ignores your evidence? Here is how I used the RBI Integrated Ombudsman Scheme to hold IndusInd Bank accountable for the second time in two years.

The Background
In 2025, I applied for an IndusInd credit card. The application was rejected without a clear reason. When I escalated the matter to RBI, the bank responded by stating that my CIBIL score was “-1”. This was factually incorrect – my score was above 800. After review, RBI directed the bank to pay ₹1,000 compensation.

The Second Incident (2026): In February 2026, a relationship manager from IndusInd contacted me and encouraged me to apply again, assuring that the issue would not recur. I applied for the Tiger Credit Card.
The result?

• Application rejected again
• Same incorrect reason: “CIBIL -1”
• Actual score: 806

“Ironically, I was applying for this card mainly for 0% forex for international travel – but the real journey turned out to be dealing with the bank itself.”

Contradictions in the Bank’s Responses

What followed was a series of inconsistent explanations:

• “CIBIL -1”
• “Internal underwriting policy”
• “Application expired”
• “No executive involvement”

At the same time:

• I was asked to submit my CIBIL report
• I was offered a ₹5 lakh pre-approved card

These contradictions formed the core of my complaint.

The Bank’s Defence (and how I broke it):

1. The “DIY” Myth: The bank claimed I applied independently through a self-service portal.

   • The Counter: I produced the application form containing the RM’s specific employee code.

2. The “Informational Call” Excuse: They claimed the 19-minute call with the RM was just “informational.”

   • The Counter: I provided call logs showing the application was submitted during that call and demanded the bank produce the recording.

The Turning Point: The RBI Ombudsman took note of the “Pattern of Recidivism” – the fact that the bank had been penalised for this exact error a year prior. An ultimatum was issued: provide a point-wise rebuttal to my evidence or pay compensation.

The Outcome: IndusInd Bank conceded. They have moved to pay ₹5,000 in compensation for the harassment and procedural lapses.

Key Takeaways for Consumers:

• Keep Paper Trails: Always send a “Summary of Discussion” email to an RM immediately after a call. Keep emails, call logs, and screenshots.

• Note the Employee Code: If an agent helps you, that code is your proof of “Assisted Sales.”

• Don’t accept vague explanations: Terms like “internal policy” often hide weak reasoning.

• Escalate to the Ombudsman: The internal bank “Grievance Redressal” is often a wall; the RBI Ombudsman is the sledgehammer.

• Focus on process, not product: This case succeeded because it highlighted a deficiency in service, not just card rejection.

Final Thoughts

This experience reinforced an important point:
Banks may not always act correctly, but there is a system in place to address it – if you are willing to follow through.

If you’re facing a similar issue, feel free to reach out or comment.