ICICI Bank’s Revised Credit Card Fee Structure: What You Need to Know
ICICI Bank has recently announced significant changes to its credit card fee structure, which will take effect on November 15, 2024. This move is set to impact various services associated with its credit cards, including insurance, grocery purchases, airport lounge access, fuel surcharge waivers, and late payment fees. Customers received an SMS from the bank detailing these changes, prompting many to reassess their credit card usage and benefits.
Changes to Reward Points
One of the most notable adjustments involves the earning of reward points on utility and insurance spends. Under the new structure:
- Utility and Insurance Capping: Customers will continue to earn reward points for utility and insurance spends up to Rs. 80,000 at the current earn rate. However, for spends exceeding this limit, the rewards will be capped at Rs. 40,000.
- Grocery and Departmental Store Purchases: The earning limit for grocery and departmental store spends will also see a reduction. Customers will earn reward points for spends up to Rs. 40,000 per month, down from the previous limit of Rs. 20,000.
Exclusions and New Fees
In a move that may affect many customers, ICICI Bank has introduced exclusions for certain transactions:
- No Rewards on Government Transactions: Customers will not earn reward points on government-related spends, a significant change for those who frequently use their credit cards for such payments.
- Fuel Surcharge Waiver Limits: The bank will now only offer fuel surcharge waivers for spends up to Rs. 50,000 per month. Any fuel purchases exceeding this limit will not qualify for the waiver.
Additionally, the bank has introduced a 1% fee on utility payments exceeding Rs. 50,000 and on fuel transactions above Rs. 10,000. This could lead to increased costs for customers who typically make large payments in these categories.
Changes to Annual Fee and Milestone Benefits
The criteria for annual fee reversal and milestone benefits have also been revised:
- Exclusions in Spend Threshold: Payments made for rent, government, and education via credit card will no longer count towards the spend threshold for annual fee reversal.
- Revised Spend Threshold: The spend threshold for the reversal of the annual fee has been adjusted to Rs. 10 lakh per annum, down from Rs. 15 lakh.
Late Payment Charges
ICICI Bank has also revamped its late payment charge structure, which will now be as follows:
- Outstanding Amount:
- Rs. 101 – Rs. 500: Rs. 100
- Rs. 501 – Rs. 1,000: Rs. 500
- Rs. 1,001 – Rs. 5,000: Rs. 600
- Rs. 5,001 – Rs. 10,000: Rs. 750
- Rs. 10,001 – Rs. 25,000: Rs. 900
- Rs. 25,001 – Rs. 50,000: Rs. 1,100
- Above Rs. 50,000: Rs. 1,300
This new structure may lead to higher penalties for customers who miss payment deadlines, making it crucial for cardholders to stay vigilant about their payment schedules.
Airport Lounge Access and Other Benefits
The eligibility criteria for complimentary airport lounge access have also changed. Customers will need to spend a minimum of Rs. 75,000 in the preceding calendar quarter to unlock access for the subsequent quarter. This change may discourage casual users from relying on their credit cards for lounge access.
Moreover, the Spa access provided through the DreamFolks card will be discontinued, further limiting the perks associated with ICICI Bank credit cards.
Other Banks Following Suit
ICICI Bank is not alone in revising its credit card policies. Other banks, such as SBI Card and HDFC Bank, have also made adjustments to their fee structures. SBI Card has increased fees for utility bill payments and finance charges, while HDFC Bank has modified its loyalty program for specific credit cards. These changes reflect a broader trend in the banking industry, where financial institutions are reassessing their offerings in response to changing market conditions.
As customers navigate these changes, it is essential to stay informed about the specifics of their credit card agreements and to consider how these adjustments may impact their financial strategies moving forward.