No, it would be adjusted in future "purchases" - but if no future purchases ever - I guess its a good question what they would do. Maybe if you try to cancel they may ask you to pay
But yes EMI is the reason. Many cards have changed T&C in recent times to include EMI not eligible for cashback (apart from things like rent, wallet loads etc) - but till a transaction is converted to EMI - they are not able to identify, hence cashback may be given. I am in the same situation with my SBI card - which I dont use much, when I called to ask why my 183 rs cashback was not credited, thats what they told me that some 200+ negative is the cashback which will be adjusted with future purchases. Now, I dont use the card that much - so need to see.
i mean it seems fine if you do not use emi feature of the card? plus you do get a proper mailer with cashback details. and you know how much you spend so you can tell the least amount of cashback you should be getting right (1% with zero shopping from Amazon)?
I missed the cc bill payment date and got a late fee of 1000 and interest of 2000 plus GST. Asked them to reverse as it was missed first time they refused. Asked them to cancel the card. HDFC has reversed the charges many time they are not even willing to do it once.