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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This evolution prompts deposit insurers to reassess the risks faced by depositors and member banks arising from the introduction of round-the-clock payment mechanisms. Patra emphasized that while digital advancements facilitate the global provision of financial services, they also raise concerns for deposit insurers dealing with banks that cater to a significant number of foreign depositors, especially in scenarios involving bank defaults and payouts.

Furthermore, the expanding scope of cross-border banking operations underscores the importance of collaboration among deposit insurers and other financial safety net participants across different jurisdictions. Patra articulated these insights during the International Association of Deposit Insurers’ (IADI) event organized by the Deposit Insurance and Credit Guarantee Corporation (DICGC) on ‘Navigating emerging challenges for deposit insurers and enhancing crisis readiness.’ DICGC currently provides coverage to 1,997 banks, comprising 140 commercial banks and 1,857 cooperative banks, positioning India as the second-largest country in terms of the number of covered deposit-taking institutions globally, trailing only behind the US, as per Patra’s statement.

In India, the existing deposit insurance coverage threshold stands at 25 lakh (approximately $6,000), safeguarding nearly 97.8% of deposit accounts and 43.1% of total deposit value. Patra also drew attention to the potential implications of central bank digital currencies (CBDCs) as potential safe havens during crises, which could impact the vulnerability of bank deposits, particularly uninsured funds, to sudden withdrawals and potential bank runs. He underscored that for deposit insurers, critical considerations include the extent to which CBDCs might replace traditional bank deposits, the delineation of responsibilities between central and commercial banks, and the level of privacy associated with CBDC usage.

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