ICICI Bank to Implement New Credit Card Rules: Spending Caps and Fee Increases Effective November 15

ICICI Bank is set to implement significant changes to its credit card offerings, which will take effect from November 15, 2024. This revision marks the second update to the bank's credit card terms in 2024, impacting various aspects such as airport lounge access, reward caps, transaction fees, and supplementary cardholder charges. Let’s delve into the details of these changes.

Category-wise Spending Caps

One of the most notable adjustments is the introduction of spending caps on rewards across different categories. The bank has established specific limits based on the type of credit card held by the customer.

• Utility and Insurance Payments: For entry-level and mid-range credit cards, the maximum spending limit is set at ₹40,000 per month. Premium cardholders will have a higher cap of ₹80,000 per month in this category.

• Grocery Spending: The monthly spending limit for grocery purchases will also be restricted. Entry-level and mid-range cardholders can spend up to ₹20,000 per month, while premium cardholders are allowed a maximum of ₹40,000.

• Fuel Transactions: Fuel spending will be capped at ₹50,000 per month for most credit cards. However, the Emeralde Mastercard Metal Credit Card offers an advantage by permitting fuel spending of up to ₹1 lakh to qualify for surcharge waivers.

These caps will necessitate a reevaluation of spending habits among cardholders, particularly for those aiming to maximize their rewards.

Introduction of Transaction Fees

Another key change involves the introduction of transaction fees on specific spending types. Effective November 15, a 1% transaction fee will be applied in the following scenarios:

• Education Payments: This fee will affect payments made through third-party platforms.

• Utility Payments: If utility payments exceed ₹50,000 in a month, this fee will apply.

• Fuel Payments: A transaction fee will be charged for fuel payments exceeding ₹10,000 in a month.

Cardholders should take note of these fees, as they may impact overall spending costs.

New Exclusions for Milestone Benefits

With the revised terms, ICICI Bank has outlined certain exclusions that will affect how cardholders can qualify for milestone benefits and annual fee waivers. Notably:

• Exclusions Include: Rental payments, government transactions, and education spending will no longer count towards the eligibility criteria for these perks.

This shift means that cardholders will need to modify their spending strategies to ensure they still qualify for benefits previously accessible through these types of transactions.

Updated Fee Structure

The bank has revised its fee structure to reflect these changes:

• Supplementary Cards: The fee for supplementary cards will now be ₹199.

• Late Payment Charges: Revised late payment charges will range from ₹100 for balances up to ₹500, escalating to ₹1,300 for balances exceeding ₹50,000.

• Finance Charges: The finance charges on outstanding credit card balances will remain unchanged at 3.75% per month, translating to an annual rate of 45%.

These updates underscore the importance of timely payments and mindful spending to avoid additional costs.

Changes to Airport Lounge Access Feature

ICICI Bank has made specific alterations to the complimentary airport lounge access feature. The new requirement states that cardholders must spend at least ₹75,000 in the previous quarter to qualify for lounge access.

• Removal of Spa Services: Additionally, spa services, which were previously available through Dreamfolks membership, will no longer be offered to cardholders.

• Emeralde Cardholders: On a positive note, holders of Emeralde, Emeralde Visa, and Emeralde Private cards will see a reduction in the spending requirement for annual fee waivers, which has been lowered from ₹12 lakh to ₹10 lakh. Furthermore, the Emeralde cards provide a higher fuel surcharge waiver limit of ₹1 lakh, distinguishing them from other cards in ICICI's portfolio.

These changes to lounge access and the elimination of spa services will require cardholders to adjust their spending to maintain access to these premium benefits.

Conclusion

The upcoming changes to ICICI Bank's credit card terms, set to take effect from November 15, 2024, are extensive and will have a significant impact on cardholders. With new spending caps, transaction fees, and revised exclusions, customers will need to adapt their spending habits to maximize benefits. The adjustments to airport lounge access and the fee structure further emphasize the importance of understanding these changes to make informed financial decisions. Overall, these updates reflect ICICI Bank's ongoing efforts to refine its credit card offerings in response to evolving market conditions and customer needs.