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 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.