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Credit Card Usage Soars: New Rules from Major Banks You Need to Know”

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In today’s fast-paced world, the use of credit cards has increased tremendously, becoming a staple for shoppers, travelers, and emergency funders alike. With various banks competing fiercely, consumers are treated to a plethora of offers, making credit cards a convenient choice for transactions, from booking tickets to shopping without the need for cash. However, recent changes in credit card terms and conditions from major banks could catch cardholders off guard. Here’s what you need to know about the latest updates from ICICI Bank, State Bank of India (SBI), and HDFC Bank.

ICICI Bank Changes

ICICI Bank, one of the leading private sector banks in India, has revised the terms of its credit cards, effective November 15. Notable changes include:

  • No Rewards on Government Transactions: Cardholders will no longer earn rewards when using their cards for government-related transactions.
  • Limited Fuel Rewards: The exemption on fuel surcharges has been capped at ₹1 lakh per month, beyond which the surcharge will apply.
  • Removal of Spa Access Card: The Dream Folks card, which offered spa access, has been discontinued.
  • Utility Transaction Fee: A 1% fee will be imposed on utility transactions exceeding ₹50,000 per month, and fuel transactions over ₹10,000 will incur the same fee.

State Bank of India Updates

SBI has also announced significant changes, set to take effect on November 1, impacting various aspects of credit card usage:

  • Increased Finance Charges: The finance charges on all credit cards will rise to 3.75%, up from the current 3.50%. This increase excludes accounts for defense personnel.
  • Utility Payment Charges: Starting December 1, if utility payments surpass ₹50,000 per month, cardholders will incur a 1% charge on these payments. This includes telephone, mobile, electricity bills, and insurance premiums.

HDFC Bank Revisions

HDFC Bank has implemented updates to its loyalty program for certain credit cards, effective from October 1. Key changes include:

  • Reward Points Limitations: Redemption of reward points for Apple products will now be limited to one transaction per calendar quarter.
  • Tanishq Voucher Redemption: The redemption of reward points for Tanishq vouchers has been restricted to a maximum of 50,000 points per quarter.

Conclusion

As credit card usage continues to rise, it’s crucial for cardholders to stay updated on the terms and conditions set by their banks. Understanding these changes can help consumers avoid unexpected fees and maximize the benefits of their credit cards. Be sure to review your bank’s policies regularly to ensure you’re making the most of your financial tools.

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