In recent months, several major credit card issuers in India have made significant changes to their credit card terms and fee schedules. Notable players such as SBI Card, ICICI Bank, and HDFC Bank have announced revisions that could impact cardholders’ spending habits and overall credit card experience. This article delves into the specifics of these changes, providing insights into how they may affect consumers.
ICICI Bank Credit Card Rule Changes
ICICI Bank has made notable modifications to its credit card fee structure, which will take effect on November 15, 2024. These changes include a reduction in benefits across various credit cards, particularly affecting services like insurance, food purchases, airport lounge access, and late payment fines.
One of the most significant changes is the discontinuation of rewards on government transactions. Additionally, the fuel surcharge waiver will now only apply to fuel spends up to ₹1,00,000 per month, with no waiver for amounts exceeding this limit. Furthermore, the spa access previously provided through the DreamFolks card will no longer be available.
The bank has also revised the spend threshold for annual fee reversal and milestone benefits. Notably, payments made for rent, government services, and education via credit card will now be excluded from the spend threshold calculations. The new threshold for annual fee reversal has been lowered to ₹10 lakh per annum from ₹15 lakh. Additionally, a fee of 1% of the transaction amount will be applied to utility payment transactions exceeding ₹50,000 and fuel transactions exceeding ₹10,000.
For more details on these changes, you can read the full article here.
SBI Card Rule Changes
SBI Card has also revised its fee structure, particularly affecting credit card transactions related to utility payments and loan costs. These changes are set to take effect on different dates, with the finance charges being revised to 3.75% per month for all unsecured SBI Credit Cards, excluding the Shaurya and Defense cards, starting November 1, 2024. This is an increase from the current rate of up to 3.50% per month (42% per annum).
In terms of utility payments, if the total amount exceeds ₹50,000 within a billing period, a 1% fee will be applied. This change will come into effect on December 1, 2024, and encompasses payments for telephone, mobile, electricity bills, and insurance premiums.
For further insights into SBI Card’s changes, you can find more information here.
HDFC Bank Credit Card Rule Changes
HDFC Bank has made updates to its loyalty program for select credit cards, with the new regulations coming into effect on October 1, 2024. Affected customers have been notified via email regarding these changes.
One of the key updates is the capping of reward points redemption for Apple products to one product every calendar quarter on the SmartBuy platform. Additionally, the redemption of reward points for Tanishq vouchers will be limited to 50,000 reward points per calendar quarter, applicable only to Infinia and Infinia Metal Cards.
According to the HDFC Bank website, the redemption cap for Apple products means that customers can only redeem points for one product every three months, aligning with the calendar quarters. This change is expected to impact how cardholders utilize their reward points, particularly for high-demand items.
For more details on HDFC Bank’s changes, you can read the full article here.
Summary of Changes
The recent changes by ICICI Bank, SBI Card, and HDFC Bank reflect a broader trend in the credit card industry, where issuers are reassessing their fee structures and benefits. Cardholders should be aware of these modifications, as they could significantly influence their spending habits and the overall value they derive from their credit cards. As these changes roll out, consumers are encouraged to review their credit card agreements and consider how these adjustments may affect their financial strategies moving forward.