Starting July 1, 2025, private banking giants HDFC Bank and ICICI Bank will implement new and increased charges across a wide range of services—especially targeting credit card users, utility payers, and ATM users.
🔸 HDFC Bank: Gaming, Wallets & Utilities Under the Lens
HDFC’s revised credit card terms now hit consumers where digital spending is growing fastest:
- Online Gaming:
- 1% fee on skill-based gaming spends above ₹10,000/month.
- Platforms like Dream11, Rummy Culture, MPL, etc. included.
- Cap: ₹4,999/month.
- No reward points on these spends.
- Wallet Loading (Paytm, Mobikwik, etc.):
- 1% fee on spends above ₹10,000/month.
- Capped at ₹4,999/month.
- Utility Payments:
- 1% fee on spends above ₹50,000/month.
- Insurance excluded.
- Cap: ₹4,999/month.
- Other Spending Categories:
- Rent, Fuel, Education: Cap of ₹4,999 per transaction.
- Fuel charges apply only on spends above ₹15,000/txn.
- No charge on education payments via direct channels (college/school POS or websites).
🔸 ICICI Bank: Traditional Banking Services Get Costlier
ICICI’s revision affects more day-to-day banking services:
- Demand Drafts (DD) & Pay Orders (PO):
- Now charged at ₹2 per ₹1,000 (min ₹50, max ₹15,000).
- Previously, it was ₹50 for up to ₹10,000 and ₹5 per ₹1,000 after that.
- ATM Charges:
- Interchange (other bank ATMs):
- ₹23/financial txn (was ₹21),
- ₹8.5/non-financial txn (unchanged) after 3 free txns.
- ICICI Bank ATMs:
- ₹23/txn after 5 free txns (was ₹21).
- Interchange (other bank ATMs):
- Debit Card Charges:
- Annual Fee: ₹300 (up from ₹200).
- Replacement Card: ₹300/card (up from ₹200).
💬 Why Are Banks Doing This?
- Monetizing Digital Growth:
As users spend more on gaming, wallets, and utilities, banks see an opportunity to tap into that digital spend with charges. - Cost Recovery & Margin Pressure:
With digital infrastructure upgrades and rising transaction volumes, banks may be trying to offset operational costs. - Shifting Customer Behavior:
The strategy could push high-volume users toward direct payment methods or reduce reward-seeking behavior like wallet loading for points.
⚠️ What Customers Should Watch Out For
- Track Monthly Spending:
Cross the threshold and charges kick in across categories. Set alerts if needed. - Reward Limitations:
No points for gaming = rethink your platform usage if you’re spending big on such sites. - ATM Usage Habits:
Consolidate ATM withdrawals to stay within free limits and avoid piling fees. - Debit Card Replacements:
Lost your card? It’s costlier now—take extra care.
📌 Bottom Line
From wallets to withdrawals, nearly every transaction is getting costlier.
Customers will need to be more alert and strategic with how they spend, pay bills, and use their cards. These revised charges also signal a growing trend of Indian banks monetizing high-volume digital transactions, a model already prevalent in several global markets.
