As of November 15, 2024, ICICI Bank is revising its credit card policies. Finance costs, late payment fees, and additional transaction fees for petrol, utilities, and schooling are all impacted by these changes. These changes could significantly affect your card usage going forward.
Updated Finance Charges
ICICI Bank will apply a finance charge of 3.75 per cent per month or 45 per cent annually, on extended credit and cash advances. It means that interest rates will increase if you have an outstanding amount or take out a cash advance on your credit card. This action fits a larger pattern of credit card companies modifying their financing rates.
Revised Late Payment Fees
ICICI Bank has changed its late payment fee structure based on the outstanding amount. The new charges are as follows:
Rs 101 to Rs 500: Rs 100
Rs 501 to Rs 1,000: Rs 500
Rs 1,001 to Rs 5,000: Rs 600
Rs 5,001 to Rs 10,000: Rs 750
Rs 10,001 to Rs 25,000: Rs 900
Rs 25,001 to Rs 50,000: Rs 1,100
Above Rs 50,000: Rs 1,300
Balances of Rs 100 or less will remain exempt from late payment fees.
Changes to Transaction-Specific Charges
1. Education Transactions
Payments made directly to schools, colleges, and international educational institutions will remain free of additional charges. However, any education-related transactions made through third-party apps will attract a 1 per cent fee. This is intended to cover processing costs linked with third-party payment platforms.
2. Utility and Fuel Charges
ICICI Bank will introduce a 1 per cent fee on utility payments above Rs 50,000. Similarly, fuel purchases exceeding Rs 10,000 will also incur a 1 per cent fee.
Unchanged Charges
Despite the recent changes, certain costs have not changed. Cash payments at ICICI Bank branches will still incur a Rs 100 fee per transaction. Rent payments and fuel surcharges will continue at a 1 per cent rate, although specific exemptions are available for Amazon Pay ICICI cards.
How This Affects Cardholders
Credit card payments must be made on time to avoid rising late charges. Cardholders should make payments for educational expenses directly to the schools to minimize third-party costs. They should also limit their gasoline and utility expenditures to fee-free quantities. By knowing these developments, ICICI Bank customers may better manage their money and prevent needless expenses.
