IDBI Bank introduces Magic Card for its salaried customers

Business

oi-Monika Nihalani

By Monika Nihalani

Published: Tuesday, August 30, 2011, 14:24 [IST]

Bankrupt this month, pockets are empty, salary got exhausted, can't shop! Imagine, if all these situations never happen.If you are salaried account with IDBI Bank, then here is something for you. IDBI bank has recently introduced a new card, named as 'Magic Card'.

Well nothing magical in this, it has just created some value addition service for its salaried customers. Those who have a salary account with IDBI will be able to avail this service.

Features of IDBI Magic Card:

• This card has two-in-one facility i.e. a first ever debit card which also carries credit limit, that charges you much less than a regular credit card.
• This will be backed by your salary account which will allow you to spend your salary and then some more. It will be like a bank overdraft facility i.e. right after you exhaust your salary you can you use this card as a credit card.
• The credit limit or overdraft limit will be three times of net salary depending on the rating of the organisation.
• This card will simply work like credit card, the only basic difference between the magic card and a typical credit card is there is no free credit period but at the same time rate of interest will be much lower and linked to bank rate.
• The bank has also kept loyalty points for the purchases made.
• You can withdraw cash only from Bank's or partner's ATM machine.
• Cash withdrawals are not subject to any charges, unlike the case of a normal credit card where users are charged a fee for such transactions. The card holder only have to bear surcharge for usage at petrol pumps and railway stations.

Interest Rates:

• Interest rate charged will be closer to their personal loan rates prevailing in the market which are lower as compared to credit card interest rates.
• The bank will charge base rate + 4% for public sector employees and base rate + 5% for others which comes out to a total interest rate of 14.75% and 15.75 % for public sector and other private sector employees respectively.
• The interest will be payable for the number of days for which the credit facility has been availed and has to be serviced on a monthly basis.

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