By Poonam Behura
CNBC-TV18.com
These credit cards will introduce new fees, reward caps in November
Published on October 31, 2024
In November 2024,SBI Card and ICICI Bank will introduce updates to their credit card charges, affecting utility bill payments, finance charges, rewards caps, and transaction fees.
Starting November 1, SBI Card will implement a 1% surcharge on utility bill payments made using its credit cards only if the total exceeds ₹50,000 in a billing cycle. This charge applies to payments for electricity, water, gas, and other utility services.
SBI Card will also hike charges on unsecured credit cards to 3.75% per month, except for the Shaurya/Defense card. Unsecured credit cards do not require collateral, making this rate hike critical for many users. This fee adjustment is part of the changes that will continue into December.
From December 1, if utility bill payments in a billing cycle exceed ₹50,000, a 1% fee will be applied to the entire amount by SBI Card, reinforcing the surcharge introduced in November.
ICICI Bank’s revised credit card rules, effective November 15, target airport lounge access, transaction fees, reward caps, and add-on charges.
For utility and insurance payments, entry-level and mid-range cards have a cap of ₹40,000 per month, while premium cards are limited to ₹80,000. For grocery spending, entry-level cardholders will get rewards limited to ₹20,000, while premium cardholders have a limit of ₹40,000.
A 1% transaction fee will be applied to education payments via third-party platforms, utility payments exceeding ₹50,000 per month, and fuel payments over ₹10,000.
Supplementary cards will now incur a ₹199 fee. Late payment charges will range from ₹100 for balances up to ₹500, to ₹1,300 for balances above ₹50,000.
Cardholders must spend at least ₹75,000 in the previous quarter to access complimentary airport lounges. Spa services under Dreamfolks membership will no longer be offered. Emeralde cardholders have lower spending requirement for annual fee waivers from ₹12 lakh to ₹10 lakh.