Ruchi SrivastavaICICI Bank has announced significant updates to its credit card policies, including changes to finance charges, late fees, and fees for fuel, utility, and education transactions. These updates, effective November 15, 2024, aim to encourage timely payments and promote financial discipline among cardholders. Detailed information on these changes is available on the bank’s website. In this Blog we will give you a detailed overview of what’s changing and how it could affect you.
Changes in ICICI Bank Credit Card Rules effective from November 15th 2024
1. Finance Charges
| Overdue Interest on Extended Credit | Interest on Cash Advances |
| Monthly Rate Annual Rate 3.75% 45% | Monthly Rate Annual Rate 3.75% 45% |
2. Late Payment Charges as per Outstanding Amount
| Outstanding Amount | Late Payment Charges (INR) |
| = Rs.100 | Nil |
| ₹101 – ₹500 | ₹100 |
| ₹501 – ₹1,000 | ₹500 |
| ₹1,001 – ₹5,000 | ₹600 |
| ₹5,001 – ₹10,000 | ₹750 |
| ₹10,001 – ₹25,000 | ₹900 |
| ₹25,001 – ₹50,000 | ₹1,100 |
| ₹50,000 | ₹1,300 |
3. Educational Transactions
If you use your credit card to make payments directly to schools, colleges, or universities, including for international education purposes, no additional fee will be charged. This ensures that parents and students can handle tuition or other educational expenses without worrying about extra costs. By promoting direct payments to educational institutions, the bank aims to simplify transactions while keeping additional charges minimal for customers. Users are encouraged to verify the payment method to avoid unnecessary fees.
4. Utility Transactions
For utility payment transactions made using ICICI Bank credit cards, a fee of 1% will be applied to the transaction amount if the total exceeds ₹50,000. This change is designed to address the higher processing costs associated with large-value payments. It ensures fair usage of credit card services for substantial utility expenses, such as electricity, water, and gas bills. Customers making utility payments below this threshold will not incur any additional charges. To avoid unnecessary fees, users are encouraged to plan their transactions accordingly and explore alternate payment methods for high-value bills if needed. For more details, refer to the bank’s official communication or website.
5.Fuel Transactions
ICICI Bank has introduced a fee of 1% on fuel transactions made with credit cards when the transaction amount exceeds ₹10,000. This charge is implemented to offset the additional processing costs associated with high-value fuel purchases. While transactions below this threshold remain unaffected, this fee encourages customers to manage their fuel expenses efficiently, especially for large-scale purchases such as those made by businesses or frequent travellers. Customers should be mindful of this limit when using their credit cards for fuel payments and consider alternate methods for transactions exceeding ₹10,000 to avoid incurring additional charges. For further details, consult the bank’s updated policy guidelines.
ICICI Bank Credit Card Rules which are not revised
1.Cash Payment and Fuel Surcharge Details
ICICI Bank has outlined specific charges for cash payments and fuel transactions. A fee of ₹100 will be applied for each cash payment made at bank branches. For fuel purchases, a surcharge of 1% of the transaction amount or ₹10 (whichever is higher) will be levied. However, customers using the Amazon Pay Card for fuel payments will enjoy a complete waiver of this surcharge. It is important to note that for fuel transactions conducted at Off-us terminals, the surcharge refund will not include Goods and Services Tax (GST).
2. Dial – a – Draft Service Fees
ICICI Bank charges a fee for its Dial-a-Draft service, which allows customers to request a demand draft. The fee is set at 3% of the draft value, with a minimum charge of ₹300 per transaction. This fee structure ensures that the bank covers the administrative and processing costs associated with issuing the draft. Customers should be aware of this fee when using the service, as it may vary based on the value of the draft requested.
3. Rent Pay Transactions (Effective Oct 20, 2022)
A 1% fee will be charged on the transaction amount for all rent payments made through any merchant. Additionally, no reward points will be earned for transactions processed under the 6513 Merchant Category Code (MCC), which is used for rent payments.
Interest Charges on Unpaid Amounts and Cash Advances
Interest will be applied if the Total Amount Due is not paid by the due date. The interest will accrue on the outstanding balance and on any new transactions, excluding fees, charges, and GST/Taxes, starting from the transaction date until the previous balance is fully paid off. Additionally, interest will be charged on all cash advances from the transaction date until repayment is made. ICICI Bank reserves the right to adjust the interest rate at its discretion. In case of default, the interest rate may increase up to 3.8% per month (46% annually).
Final Thoughts
ICICI Bank’s updated late payment fees and finance charges emphasize the importance of responsible credit card use. While these changes may seem stricter, they encourage timely payments and financial discipline to avoid unnecessary penalties. These revisions highlight the need for careful credit management, reminding cardholders to stay on top of payments and minimize interest charges. By planning finances better and using credit wisely, you can avoid higher fees and ensure financial stability. Staying informed about these updates and adopting proactive payment habits will help you navigate the changes smoothly and continue benefiting from your credit card without incurring extra costs.
Sources : msn.com
