If you have an ICICI Bank credit card, get ready to pay new charges from November 15. The bank has announced several changes in the charges. The changes include finance charges, late payment charges, and additional transaction charges for education, utilities, and fuel. According to a Livemint report, from November 15, ICICI Bank will charge finance charges on loans and cash advances to credit cardholders at 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.
Late payment charge
ICICI Bank has restructured its late payment charge based on the outstanding amount. As per the new change, the fee for a balance between ₹101 to ₹500 will be ₹100. Similarly, for amounts above ₹50,000, the late payment charge will be up to ₹1,300. Balances less than ₹100 will be exempt from any late payment charge.
Education-related transactions
Payments made directly to schools or colleges, including international education fees, will not attract additional charges. Yes, if you make payments through third-party applications, a 1% fee will be applicable on such payments. The purpose of this change is to compensate for the processing cost associated with external payment platforms.
Utility and fuel transaction charges
According to the news, for utility payments, if the transaction amount is more than ₹ 50,000, a new charge of 1% will be levied. Similarly, if the fuel transaction is more than ₹ 10,000, then also a 1% charge will be levied.
Unchanged fees and other charges
Some charges remain the same. The fee for cash payments at bank branches will stay at ₹100 per transaction. The fuel surcharge and fare payments will continue to be 1% of the transaction amount. Interest charges on overdue balances and cash advances will still apply until the balance is paid in full. In case of default, the maximum monthly rate will be 3.8% (46% per annum).