Bank harassing over credit card cancellation

I wanted to cancel my credit card with a private bank. I was told I had to clear the dues. I signed the cheque with the outstanding amount and submitted it. And immediately I called up the bank that I had sent the cheque. They said the cheque had to be cleared. I made it very clear that I am requesting for cancellation and I do NOT want a replacement credit card. I had signed a local cheque so the cheque clearance should not have taken time in the first time. Yet every time I called up, I was told the dues are outstanding and the cheque has not been cleared yet (despite money being withdrawn from my end). The bank told me to send a copy of my bank statement. It was only after I sent my bank statement that the bank admitted to receving the payment (the cheque had been cleared the very next day of submitting it, but the bank officials lied to me that the clearance had not happened). Following this, I called up the bank again to request for the cancellation of the card (as dues had been cleared). To my shock, the bank officials said that additional payment is outstanding because the older card was blocked and the replacement card was being issued, so they were adding card replacement charges on me (and forcing me to accept a replacement card). They claim credit cards cannot be cancelled in their bank, but only blocked and replaced. Basically, the bank is harassing me and forcing me to accept a replacement credit card, demanding charges from me, and refusing to cancel my original credit card. Is it legal on the bank's part to force a customer to maintain a credit card if the customer does not want to do so? Can any bank refuse credit card cancellation (despite dues being cleared) on the grounds that cancellation policy does not exist? Going further, if the bank forcibly sends me the replacement card (even when I made it clear that I don't want it), what further action can I take? If the bank keeps sending me credit card bills demanding money and forcing me to maintain a credit card (even if I don't want to), what is the further course of action to be taken?