Can A Bank Reduce Credit Limit of Credit Card ?

A Very Common Question asked by many of the customers who are availing the Credit Cards – Can A Bank Reduce Credit Limit of Credit Card ?

Bank under their own discretion may increase and decrease the Credit Limit of Credit cards under prior information to customers. RBI says that when the credit limit is reduced the bank must inform the card-holder immediately by SMS / e-mail followed by a confirmation in writing.