An annual fee usually shows up on a statement with no warning, often a year after you last thought about it. Many cardholders either pay it without thinking or leave it unpaid in annoyance. Neither is a great response. A short decision process works better.
Step one: find out what the fee really is
Check your latest statement and the MITC for:
- The annual fee and the date it is charged
- GST at 18%, added on top
- Any spending level that waives the fee, and over what period
- Which spending counts, because EMIs, fuel, wallet loads and cash withdrawals are commonly excluded
RBI’s rules say issuers must not levy a charge that wasn’t explicitly indicated to you. Waivers themselves are generally set by each issuer’s terms, and we didn’t find any RBI rule giving you a right to a waiver. So if the fee is disclosed and you have not met the condition, a waiver is something you ask for, not something you can demand.
Step two: work out whether the card earns its keep
Suppose your card charges ₹1,000 a year, which is ₹1,180 with GST, and waives this if you spend ₹1,00,000 in a year. You have spent ₹80,000, so you are ₹20,000 short.
If you were going to spend that ₹20,000 anyway, for example on insurance or planned purchases that qualify, moving it to the card could save you ₹1,180. Just make sure you can pay that bill in full.
If you would have to buy things you don’t need, you are spending ₹20,000 to save ₹1,180. That is a bad deal.
Now look at the whole year. Add up the rewards you actually redeemed and the benefits you really used, then subtract the fee. Our guide to reward points explains how to put a rupee value on points. If the result is less than zero, and it will stay that way next year, the card is costing you money.
Step three: choose your path
| Your situation | Sensible option |
|---|---|
| You will reach the spending level through normal bills | Move planned spending to the card and pay in full |
| You missed it narrowly, and you use the card often | Ask for a waiver or reversal |
| You use the card rarely but it’s your oldest account | Ask for a waiver or a move to a lower-fee variant, then decide |
| You don’t use it, and a similar card is already in your wallet | Consider closing it |
| You can’t clear your bills in full | Deal with the debt first, as the fee is the smaller problem |
How to ask for a waiver
Keep it simple, and use only official routes: the app, the customer care number on the back of your card, or your branch.
- Choose your moment. It helps to ask soon after the fee is billed, and well before the due date.
- Explain your position. Mention how long you have held the card, that you pay on time, and that you may close it if the fee stays. Only say that if you mean it.
- Ask specific questions. Could the fee be waived or reversed? Is there a lower-fee or no-fee variant available? Would the GST be reversed as well?
- Get the answer in writing, or note the reference number. Check your next statement to confirm that it was reversed.
Some issuers may agree, while others won’t. Being a good customer makes it more likely, but nothing guarantees it.
If you have asked for a waiver, the fee still counts as due until it is actually reversed. Pay at least the minimum, or the full amount, if the due date comes first. You can ask for a reversal later.
Beware of callers who offer to waive your fee and then ask for card details or an OTP. That is a common fraud script. Don’t share anything, and hang up. Call the number printed on your card. Our guide to card fraud explains what to do if you have already shared details.
Before you close a card
Closing a card can change your numbers in ways you may not expect.
Your utilisation can rise. Suppose you have two cards with a limit of ₹50,000 each, and you spend ₹20,000 a month. That is 20% of ₹1,00,000. Close one and the same spending becomes 40% of ₹50,000. Our utilisation guide explains why this matters.
Your credit history may be affected. Older accounts help your credit history, so think twice before closing your oldest card.
Rewards can vanish. Redeem your points first, as they may be lost on closure.
Standing instructions can break. Move any subscriptions or auto-pays to another payment method to avoid missed payments.
How to close it properly
As of November 2026, RBI’s rules say a closure request must be honoured within seven working days, as long as you have cleared all dues. If the issuer delays, it owes you ₹500 per calendar day of delay.
Clear all charges, including any added after your last statement. Ask for written confirmation, and check a few weeks later that your credit report shows the card as closed. Also, if a card hasn’t been used for more than a year, the issuer may start the closure process after informing you. Don’t rely on that if there are any unpaid amounts.
Bottom line
Do the sum, then decide. Use the waiver if your normal spending earns it, ask politely if you missed it narrowly, and close the card properly if it no longer pays its way. Check your issuer’s current terms, and never leave a fee unpaid in the hope that it goes away.
Frequently asked questions
Can I get my annual fee waived without meeting the spending target?
Sometimes. Some issuers may offer a waiver or reversal on request, particularly to customers who use their card regularly and pay on time, but it's their decision. Ask politely through an official channel and be ready for a no.
Does spending on rent or fuel count towards the waiver?
It may not. Issuers commonly exclude certain categories, such as fuel, wallet loads, EMIs or cash withdrawals. Check your card's MITC or ask the issuer which spending counts.
Should I just stop paying a fee and let the card lapse?
No. An unpaid fee can attract interest and late charges and can hurt your credit record. If you want out, clear all dues and formally ask for the card to be closed.
How long does a bank take to close my card?
As of November 2026, RBI's rules require issuers to act on a closure request within seven working days if all dues are paid, and to pay ₹500 per calendar day of delay after that.
