Major Indian Banks Revamp Card Rules: HDFC, ICICI, and IDFC FIRST Announce Policy Shifts

In a significant move that will affect millions of customers, three prominent Indian banks – HDFC Bank, ICICI Bank, and IDFC FIRST Bank – have announced substantial changes to their credit and debit card policies. These modifications, set to roll out between August and October, encompass a range of alterations from transaction fees to lounge access rules. Here’s a comprehensive breakdown of the upcoming changes:

HDFC Bank Overhauls Credit Card Charges

Effective August 1, HDFC Bank is implementing a series of updates to its credit card fee structure:

1. Rental Payments: A new 1% fee will be applied to rent payments made through popular third-party apps like PayTM, CRED, and MobiKwik, with a ceiling of Rs 3,000 per transaction.

2. Fuel Purchases: Transactions exceeding Rs 15,000 will incur a 1% fee, capped at Rs 3,000. Smaller purchases remain unaffected.

3. International Transactions: Cross-border purchases will now attract a higher 3.5% markup fee.

4. Late Payment Penalties: The bank has revised its late payment fee structure, now ranging from Rs 100 to Rs 300 based on the outstanding amount.

5. Easy-EMI Facility: Customers opting to convert purchases into EMIs will face a processing fee of up to Rs 299, applicable to both online and in-store transactions.

ICICI Bank Revises Debit Card Lounge Access

ICICI Bank is modifying its airport lounge access policy for select debit cardholders:

Starting October 1, customers can earn two complimentary airport lounge passes by spending Rs 10,000 in the preceding calendar quarter.

IDFC FIRST Bank Adjusts Credit Card Terms

IDFC FIRST Bank is introducing two key changes to its credit card policies:

1. Minimum Amount Due (MAD) Reduction: From September 2024, the MAD calculation will decrease from 5% to 2% of the outstanding principal balance, which includes purchases, cash withdrawals, and balance transfers.

2. Payment Due Date Modification: The grace period for credit card payments will be shortened from 18 days to 15 days from the statement generation date.

These policy revisions by major banks signify a shift in the financial landscape, potentially impacting cardholders’ spending habits and financial planning. Customers are advised to review these changes carefully and adjust their usage patterns accordingly to optimize their banking experience and avoid unexpected charges.

As the implementation dates approach, it’s crucial for cardholders to stay informed about these updates and consider how they might affect their personal financial strategies. Banks are expected to communicate these changes directly to their customers, but proactive inquiry and awareness will help ensure a smooth transition to the new policies.