Mustafa Raza was "pleasantly shocked and surprised" when he got a mail from his credit card company last May, stating they had increased his credit card limit from Rs 20,000 to Rs 30,000!

Mustafa (name changed on request) works with one of India's leading private sector insurance company. Ironically, his credit card was issued by the same bank that promoted his insurance company.

Mustafa is just 23 years old, and, with an annual salary of Rs 2 lakh, a credit limit of Rs 30,000 means a lot to him.

It was a pleasant surprise because he could now spend more using his credit card. It was shocking because he had not requested his credit card company to enhance his credit limit.

This is what actually happened:

Mustafa had been paying his monthly dues to his credit card company well before the due date. The bank decided to reward his good credit history by increasing his credit limit, Mustafa was told by the "sweet-talking" customer service executive when he called the bank after he got their mail about the increased credit limit.

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Last April Mustafa got a neat 30 percent hike in his salary. "Perhaps they may have figured this out too," Mustafa reminisces.

Mustafa is not the only one who has received unsolicited offers from banks ranging from a free credit card to increase in credit limit and an enhancement of their credit cards which again means a hike in credit limit.

Very often we wonder if consumers/ borrowers using a range of financial services offered by banks and non banking finance companies can take action against banks erring on various counts.

More importantly, do bank customers have any right to privacy? Here are some answers, courtesy the Reserve Bank of India website:

Right to privacy

~ Unsolicited cards should not be issued. In case, an unsolicited card is issued and activated without the consent of the recipient and the latter is billed for the same, the card issuing bank / NBFC shall not only reverse the charges forthwith, but also pay a penalty without demur to the recipient amounting to twice the value of the charges reversed.

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~ Unsolicited loans or other credit facilities should not be offered to the credit card customers. In case, an unsolicited credit facility is extended without the consent of the recipient and the latter objects to the same, the credit sanctioning bank / NBFC shall not only withdraw the credit limit, but also be liable to pay such penalty as may be considered appropriate.

~ The card issuing bank / NBFC should not unilaterally upgrade credit cards and enhance credit limits. Prior consent of the borrower should invariably be taken whenever there is any change/s in terms and conditions.

~ The card issuing bank / NBFC should maintain a Do Not Call Registry (DNCR) containing the phone numbers (both cell phones and land phones) of customers as well as non-customers (non-constituents) who have informed the bank / NBFC that they do not wish to receive unsolicited calls / SMS for marketing of its credit card products. The DNCR should be set up within two (2) months from the date of this circular and wide publicity should be given to the arrangement.

~ The intimation for including an individual's telephone number in the Do Not Call Registry (DNCR) should be facilitated through a website maintained by the bank / NBFC or on the basis of a letter received from such a person addressed to the bank / NBFC.

~ The card issuing bank / NBFC should introduce a system whereby the DSAs/ DMAs as well as its Call Centers have to first submit to the bank / NBFC a list of numbers they intend to call for marketing purposes. The bank / NBFC should then refer to the Do Not Call Registry (DNCR) and only those numbers which do not figure in the Registry should be cleared for calling.

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~ The numbers cleared by the card issuing bank / NBFC for calling should only be accessed. The bank / NBFC would be held responsible if a Do Not Call Number (DNCN) is called on by its DSAs / DMAs or Call Centre/s.

~ The card issuing bank / NBFC should ensure that the Do Not Call Registry (DNCR) numbers are not passed on to any unauthorised person/s or misused in any manner.

~ Banks / NBFCs/ their agents should not resort to invasion of privacy viz., persistently bothering the card holders at odd hours, violation of 'do not call' code etc.

Have you ever come across such a situation where a bank sent you unsolicited offers? Share your opinions and advice with us on the messageboard below!