Credit Card Rules: If you use an IndusInd Bank credit card, your expenses are set to increase starting today. The bank has made several significant changes to its credit card rules, effective June 15. The bank has changed five rules related to credit cards, ranging from minimum due dates, late payment charges, and shopping bills, Jagran Business reported
Let's learn more about these changes and how they will affect you.
1. Paying Only Minimum Due Amount Will Result In Significant Loss
Many people are relieved by simply paying the minimum amount due on their credit card instead of paying the full bill. However, as per new rules, if you do not pay the full bill, heavy interest will continue to accrue on the remaining balance.
The catch is, you will not get back the interest-free period (days without interest) until you pay the entire bill on time for two consecutive months (Statement Cycles).
2. Substantial Increase In Late Payment Charges
If you fail to pay your credit card bill by the due date, you will now have to pay a higher penalty than before. The bank has increased the late payment fee as follows: Balances between Rs 501 and Rs 1,000 will now cost Rs 500 instead of Rs 350. Balances between Rs 5,000 and Rs 10,000 will now cost Rs 750 instead of Rs 550.
This increased late payment charge will not be applicable on some of the bank's premium cards like Club Vistara Explorer, Pioneer Private and Pioneer Heritage.
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3. Bank Reduces Limit On Purchase Of Petrol, Diesel
If you purchase large quantities of fuel using your credit card, the bank has reduced its limit. Previously, purchasing fuel worth more than Rs 50,000 in a month was subject to an extra charge. Now, this limit has been reduced to Rs 30,000. This means that purchasing petrol and diesel worth more than Rs 30,000 in a month will incur a 1 per cent extra fee and GST.
4. New Setback On Travel, Transport
Those who frequently use credit cards to book cabs (Ola/Uber), bus, and train tickets, or pay toll taxes, will be hit. Spending more than Rs 40,000 on these transport services in a month will now incur a 1 per cent additional charge plus GST.
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5. Shopping From Foreign Websites Will Be Expensive
When you make a purchase from an international website or merchant and the bill is directly denominated in Indian Rupees (INR) instead of dollars, a Dynamic Currency Conversion (DCC) charge applies. The bank has increased this charge from 1 per cent to 2 per cent (plus GST) for standard cards and Tiger Cards. This means that international transactions will now become more expensive than before.