Starting November 15, 2024, if you’re an ICICI Bank credit card holder, there are some important updates you’ll want to be aware of. The bank has revised its fees and finance charges, reflecting a broader move to keep up with industry trends and manage rising operational costs more effectively.
ICICI’s New Finance Charges And Late Fees
Let’s break down what’s changing. ICICI Bank has updated the interest rates on credit carried forward and cash advances. The new monthly interest rate is set at 3.75%, which works out to an annual rate of 45%. This will affect both the interest on unpaid balances and any cash advances you might take on your card.
The bank has also restructured its late payment fees. Depending on how much you owe, fees can range from Rs 100 for balances just over Rs 100 to Rs 1,300 for balances exceeding Rs 50,000. If your balance is under Rs 100, you’re in luck—there won’t be any late fee.
Special Fees For Education And Utility Payments
ICICI Bank also has some evolutionary changes in the way it deals with transactions related to education and utility, making these processes smoother and cost-effective. Direct payments to educational institutions, including overseas schools, will have no extra charges. Charges will apply to third-party app payments at a rate of 1%. This small fee helps cover the additional processing costs that these platforms entail.
Utility payments over Rs 50,000 and fuel transactions over Rs 10,000 will now come with a 1% fee. It’s a small adjustment that helps balance the costs of processing these large transactions.
Fees That Haven’t Changed
Not everything is changing, though. The fee for making cash payments at bank branches remains steady at Rs 100 per transaction. Regular fuel surcharges and rent payments also continue to have a 1% fee, with some exceptions for Amazon Pay Card users.
If you happen to miss a payment, the maximum interest rate for defaults has been slightly adjusted to 3.8% per month or 46% annually. This interest will accrue until the balance is fully paid.
What This Means Compared To Other Banks
These changes come just after SBI Card adjusted its finance charges to 3.75% monthly, starting November 1, 2024. Banks are recalibrating their strategies around credit card fees, which is something to keep an eye on whether you’re shopping around for a new card or considering how to manage your current one.
ICICI Bank is encouraging all customers to review these changes in detail, which can be found on their website or by contacting customer service. Understanding these updates will help you manage your finances better and avoid any surprises on your next credit card statement.
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