Are Private Banks Raising Charges on Credit Cards and Banking Services Starting July 1?

New Delhi, June 1 (NationPress) - Beginning July 1, prominent private banks such as HDFC Bank and ICICI Bank will implement increases in fees associated with various credit card and banking services.

Both banks have communicated these adjustments to their clients through official announcements.

HDFC Bank has introduced new charges targeting credit card holders, particularly for transactions linked to online gaming, digital wallets, and utility bill payments.

For customers who exceed a monthly expenditure of Rs 10,000 on online skill-based gaming platforms like Dream11, Rummy Culture, Junglee Games, or MPL, a fee of 1 percent will be applied to the total monthly spending in this category.

This fee will be capped at Rs 4,999 per month. Additionally, no reward points will be granted for these gaming transactions.

In a similar vein, if a customer loads over Rs 10,000 into third-party wallets such as PayTM, Mobikwik, Freecharge, or Ola Money using their HDFC credit card, a 1 percent charge will be assessed on the entire amount, also capped at Rs 4,999 per month.

For utility payments, any spending that exceeds Rs 50,000 in a month will incur a 1 percent charge, again with a monthly maximum of Rs 4,999.

Notably, HDFC Bank has clarified that payments for insurance will not be categorized as utility payments, thus incurring no additional charges.

The bank has also adjusted the maximum fees for transactions involving rent, fuel, and education. The new upper limit for charges in these categories will be Rs 4,999 per transaction.

The 1 percent fee on rent payments remains unchanged. For fuel transactions exceeding Rs 15,000, a 1 percent charge will apply, while education payments made directly through official college or school websites or their card machines will not incur any charges.

ICICI Bank has also revised several of its service fees. The charge for depositing cash, cheques, or for Demand Draft (DD) and Pay Order (PO) transactions has been updated.

Customers will now incur a charge of Rs 2 per Rs 1,000, with a minimum fee of Rs 50 and a maximum of Rs 15,000.

Previously, the bank charged Rs 50 for amounts up to Rs 10,000 and Rs 5 per Rs 1,000 beyond that.

ATM fees have also increased. After the first three free transactions at other bank ATMs, ICICI will now charge Rs 23 for financial transactions and Rs 8.5 for non-financial ones.

Previously, the fee for financial transactions was Rs 21. For ICICI Bank ATMs, regular savings account holders will now pay Rs 23 for each financial transaction beyond the first five in a month, an increase from Rs 21 earlier.

Furthermore, the annual fee for ICICI Bank debit cards has risen from Rs 200 to Rs 300, with the fee for replacing a debit card also increasing from Rs 200 to Rs 300.