ICICI Bank Announces Big Changes In Credit Card Transactions From Nov 15; Check Details

ICICI Bank, India's second-largest lender by market capitalization, has announced significant changes to its credit card transaction fees, effective from November 15. These changes are mainly in the fee structure of the ICICI credit card, which has been revised as per industry standards to improve transparency for the credit cardholders.

What are these changes?

Starting November 15th, people who currently own an ICICI credit card will have to bear a finance charge that will be applicable on the card transactions. These charges are set at 3.75% per month representing an annual percentage rate (APR) of 45%. The finance charges will be applicable on overdue balances that remain unpaid and on cash advances made using your credit card.

Revised Charges For Late Fee Payments:

The bank has also updated its late payment fees on the credit cards. As per the bank's notice, the new charges can go up to Rs. 1,300 depending on the outstanding balance.

As per the latest updates, for balances less than or equal to Rs 100, no fee will be charged. If the outstanding amount ranges between Rs 101 and Rs 500, the fee will be Rs 100. For amounts between Rs 501 and Rs 1,000, the fee increases to Rs 500. Balances ranging from Rs 1,001 to Rs 5,000 will incur a fee of Rs 600, while those between Rs 5,001 and Rs 10,000 will have a fee of Rs 750. If the outstanding balance is between Rs 10,001 and Rs 25,000, the fee will be Rs 900. For amounts between Rs 25,001 and Rs 50,000, the fee rises to Rs 1,100, and for any balance above Rs 50,000, the late payment fee will be Rs 1,300. These charges will be applicable only if the payment is not completed within the due date.

Removal of Fees on Education Payments

One of the most important updates in the series of listed changes is the updates on the education payments fee. ICICI Bank will no longer charge any fees for credit card payments made directly to schools or colleges, including international institutions. This move is a big relief for students and parents, especially for those paying high tuition fees. It should be noted that if the payment is made through a third-party app, a minimal 1% fee will be applicable on the same.

New Charges on Utility and Fuel Transactions

ICICI Credit card holders will also observe some major changes that's important for cardholders to keep this in mind, particularly if they make large utility payments through their credit card. To match the current industry trends, ICICI Bank will now charge a 1% fee on utility payments that exceed Rs. 50,000. This fee will be applicable to transactions such as electricity, gas, and water bill payments.

Similarly, ICICI Bank will impose a 1% fee on fuel purchases that exceed Rs. 10,000. For individuals who frequently use Credit Cards for fuel transactions, especially those with large fuel bills, should be aware that this fee applies exclusively to fuel purchases that exceed the specified amount All transactions below that amount are free of the charges mentioned.