Big Banks Shake Up Credit Card Services in July
Various important banks in India are making significant changes to their credit card offerings in July 2024. Here’s a brief of the key updates:
SBI Card:
Reward points will no longer be assign on government transactions for specific SBI credit cards from starting July 15th. A list of affected cards is available on the SBI Card website.
ICICI Bank:
• Credit card replacement fees are increasing from Rs 100 to Rs 200 for most cards (excluding the Emerald Private Metal Credit Card).
• Several service charges are being discontinued, including fees for:
- Cheque/cash pickup
- Charge slip requests
- Dial-a-draft transactions
- Outstation cheque processing
- Duplicate statement requests (beyond 3 months)
Citibank Credit Cards (Migrating to Axis Bank):
• Citibank is migrating all customer relationships, including credit cards, to Axis Bank by 15th July.
• Existing Citibank cards will keep up to function until customers accept their new Axis Bank cards later this year.
• Reward points earned before migration will never expire. However, points earned after migration will have a three-year expiry period.
Additional Changes:
• The Tata Neu Infinity HDFC Bank Credit Card will start offering 0.5% cashback in NeuCoins on eligible UPI transactions from 1st August. An additional 1% cashback in NeuCoins is available if customers are using a Tata Neu UPI ID.
• HDFC Bank is implementing a 1% fee (capped at Rs 3,000 per transaction) on rent payments made through platforms like CRED, Paytm, Cheq, MobiKwik, and Freecharge, starting 1st August.
Recommendations:
• Customers with SBI cards should analyse the list of affected cards to understand the effect on government transaction rewards.
• ICICI Bank credit card holders can benefit from the discontinued service charges.
• Citibank credit card customers should be aware of the migration to Axis Bank and the update reward points policy.
• For the Tata Neu Infinity HDFC Bank Credit Card and HDFC Bank rent payments, consider different methods if the new charges are unsuitable.
It’s important for credit card holders to stay informed about these changes to improve their rewards and avoid unnecessary fees.
