This news is important for those who use ICICI Bank credit card. The bank has announced several updates regarding finance charges, late payment charges, additional transaction fees for education and additional transaction charges for fuel.
Credit Card Fees: ICICI Bank has announced several updates to its credit card fees, which are set to come into effect from November 15, 2024. These changes include finance charges, late payment charges, additional transaction fees for education and additional transaction fees for fuel. These adjustments have been made at a time when ICICI Bank aims to streamline its charges in line with industry trends and align with rising operational costs.
From mid-November, finance charges on credit and cash advances extended to ICICI Bank credit cardholders will now be applicable at a monthly rate of 3.75%, which is equivalent to an annual rate of 45%. This applies to overdue interest on unpaid balances and any cash advances on credit cards.
Late Payment Fees
ICICI Bank has restructured its late payment charges based on the outstanding amount. The late payment fee will range from ₹100 for balances between ₹101 and ₹500 to ₹1,300 for amounts above ₹50,000. Balances below ₹100 remain exempt from any late payment charges.
Educational Transactions
Payments made directly to schools or colleges, including international education fees, will not attract any additional charges. However, a 1% fee will be applicable on education-related payments made through third-party applications. This change is aimed at offsetting the processing costs associated with external payment platforms.
Utility and Fuel Transaction Charges
A new 1% fee will be charged for utility payments if the transaction amount exceeds Rs 50,000. A 1% fee will also be levied on fuel transactions above Rs 10,000.
Some charges remain unaffected by the new policy. The fee for cash payments at bank branches will still be Rs 100 per transaction, while fuel surcharge and fare payments will continue to be 1% of the transaction amount, with specific discounts on Amazon Pay cards. Additionally, interest charges will apply on all overdue balances and cash advances until the balance is paid in full. The maximum monthly rate in cases of default is 3.8% (46% annualised).
