ICICI has announced several updates to its credit card charges, starting from November 15.th2024. These changes include finance charges, late payment fees and additional transaction fees for education, utilities and fuel. These adjustments come as ICICI Bank aims to streamline its charges in line with industry trends and rising operating costs.
finance charges
From mid-November, finance charges on extended loans and cash advance for icici bank credit Cardholders will now be charged a monthly rate of 3.75%, equivalent to an annual rate of 45%. This applies to overdue interest on unpaid balances and any cash advances on credit cards.
Apart from this, late payment charges have also been changed based on the outstanding amount, ICICI Bank has restructured. Charges will range from ₹100 for balances between ₹101 and ₹500, to ₹1,300 for amounts over ₹50,000. Balance amount less than ₹100 will be free from any late fee.
Payments made directly to schools or colleges will not incur any additional charges, including international education fees. However a 1% fee will be charged on education-related payments made through 3third-Party Application. This change is intended to offset the processing costs associated with external payment platforms.
Utility and Fuel Transaction Fees
A new 1% charge will be levied on utility payments for transaction amounts above ₹50,000. 1% charge to be levied Fuel transactions above ₹10,000 will also attract 1% charge.
All of the above, and then some, are fees that will be unaffected by the new policy. Charges for cash payments at bank branches will still be ₹100 per transaction, while 1% charge on the transaction amount will remain intact with specific discounts on Amazon Pay cards on fuel surcharge and fare payments.
Additionally, in cases of default, interest charges at a maximum monthly rate of 3.8% (46% p.a.) will continue to apply on all overdue balances and cash advances until the balance is paid in full.
These updates from ICICI Bank follow the recent adjustment made by SBI Card, which has increased its own finance charges to 3.75% per month from November 1, 2024.
