ICICI Bank has made significant changes to its credit card policies in 2024, affecting key areas like finance charges, late payment penalties, utility payments, and reward points. Whether you're an existing cardholder or considering applying for an ICICI credit card, it’s crucial to stay informed about the latest updates to avoid unnecessary charges and maximize your benefits. In this article, we’ll walk you through the revised rules for ICICI credit cards, so you can better manage your spending and avoid penalties.

ICICI Credit Card Finance Charge Updates

ICICI Bank has introduced changes to its finance charges, particularly for overdue payments and cash advances. If you miss your payment or withdraw money in advance, you will now incur higher interest rates:

Overdue Payments: If your payment is overdue, the monthly interest charge will now be 3.75% (annualized at 45%). This interest will apply to any outstanding amount on your card.
Cash Advances: The same interest rate of 3.75% per month (45% per annum) will be applied to any cash withdrawals made using your ICICI credit card.

These new finance charges are important to keep in mind to avoid high interest costs if you're unable to pay off your credit card balance in full.

Revised ICICI Credit Card Late Payment Charges
Late payments now attract updated fees, depending on the outstanding amount. Here’s a breakdown of the revised late payment charges for ICICI credit cards:

1. Rs 101 to Rs 500: Rs 100 charge
2. Rs 501 to Rs 1,000: Rs 500 charge
3. Rs 1,001 to Rs 5,000: Rs 600 charge
4. Rs 5,001 to Rs 10,000: Rs 750 charge
5. Rs 10,001 to Rs 25,000: Rs 900 charge
6. Rs 25,001 to Rs 50,000: Rs 1,100 charge
7. Above Rs 50,000: Rs 1,300 charge

These late payment fees are considerably higher than before, so it's vital to stay on top of your payments to avoid these extra charges.

Education Transactions: No Charges for School Fees

Good news for parents and students: ICICI Bank will not charge any additional fees for paying school or college fees with an ICICI credit card. However, if you make the payment through a third-party app, you will incur a 1% transaction fee. This policy change makes it easier to pay education expenses without worrying about additional charges when paying directly via the bank.

Utility Payments: New Charges for Large Transactions

If you use your ICICI credit card for utility bill payments, be aware that a new fee applies for payments exceeding Rs 50,000:

Transaction Fee: A 1% fee will be levied on utility payments exceeding Rs 50,000.

This change may affect large utility bills like electricity, water, and gas, so it’s important to keep the transaction limits in mind.

Earn Reward Points on Utility Bills & Insurance Premiums

One of the most exciting updates is the opportunity to earn reward points for paying utility bills and insurance premiums. Previously, you needed to spend up to Rs 80,000 on these payments to qualify for rewards, but now you can start earning points once you spend Rs 40,000. This makes it easier for cardholders to earn rewards while managing essential expenses.

Fuel Surcharge: 1% Charge on Large Transactions

ICICI credit cardholders will now incur a 1% surcharge on fuel transactions if the payment exceeds Rs 10,000. This change may impact those who frequently fill up their vehicles with large fuel amounts. Consider keeping your fuel expenses below this threshold to avoid the extra charge.

Grocery Spending: Earn Rewards Sooner

In another welcome update, ICICI has made it easier for cardholders to earn reward points on grocery and departmental store purchases. Previously, you had to spend up to Rs 40,000 to qualify for rewards, but now you can earn points by spending just Rs 20,000 per month. This change is a great incentive for frequent shoppers and ensures that even moderate grocery purchases help you accumulate rewards faster.

Conclusion: Stay Informed to Maximize ICICI Credit Card Benefits

With these updated ICICI credit card rules, cardholders now face new fees and opportunities to earn rewards. To avoid unnecessary charges, be sure to:

Pay your dues on time to avoid high late payment fees.
Use your card wisely to minimize finance charges, especially for cash advances.
Take advantage of new rewards opportunities for paying utility bills, insurance premiums, and even groceries.

By understanding and following the new policies, you can make the most of your ICICI credit card while avoiding unwanted fees. Always check your credit card statements regularly and stay on top of your payments to keep costs under control.