Rules Change From 1 July: SBI and HDFC along with other major banks have made major changes in the rules related to credit cards, which will come into effect from different dates in July and August.
Most importantly, the air travel accident insurance coverage of Rs 1 crore that comes with the credit card is being removed.
If you use a credit card, then it is important for you to know and understand the new rules. SBI and HDFC along with other major banks have made major changes in the rules related to credit cards, which will come into effect from different dates in July and August. Most importantly, the air travel accident insurance coverage of Rs 1 crore that comes with the credit card is being removed.
Under the new rules, banks have reduced the facilities provided with credit cards. Along with this, many types of fees have been increased or new charges have been added for making purchases through credit cards. Rules related to reward points have also been changed and a provision has been made to charge a fee for spending after a limit. Under the new rules, the burden on the pockets of people using credit cards will increase.
HDFC’s new rules from July 1
A one per cent fee will be charged for spending more than Rs 50,000 using a consumer card.
A one percent fee will be charged for monthly expenditure of more than Rs 75,000 using the business card.
The limit of reward points has also been fixed.
Third-party wallets like Paytm, Mobikwik, Freecharge, Ola Money will attract a 1 per cent fee for monthly loading above Rs 10,000, up to a maximum of Rs 4,999.
Now a one per cent fee will be levied on online skill-based gaming.
A one per cent fee will be levied for spending more than Rs 10,000 per month on playing games on the online platform.
One percent fee will also be levied on wallet loading.
Free air accident insurance on SBI stopped, new rules from July 15
The free air accident insurance of Rs 1 crore offered by SBI on premium credit cards like Elite, Miles Elite, Miles Prime will be discontinued.
The insurance coverage of Rs 50 lakh given to customers on Prime and Pulse credit cards will also be discontinued.
There has also been a change in the calculation of the minimum amount payable.
Now, the bill will also include GST , EMI, fees, finance charges, over limit amount and 2% of the remaining outstanding amount.
The order of payments will also change. From July 15, GST will be applicable on the order of payments like EMI, fees, finance charges, balance transfer, retail spend and cash advance.
Accident insurance will also be discontinued on these cards from August 11
Air accident insurance of Rs 1 crore and Rs 5 lakh on UCO Bank SBI Card Elite, Central Bank of India SBI Card Elite, PSB SBI Card Elite, KVB SBI Card Elite, KVB SBI Signature Card and Allahabad Bank SBI Card Elite cards will be discontinued from August 11.
Other banks will change the rules soon
The impact of the changes made by the largest public sector bank SBI and the leading private sector bank HDFC in the rules related to credit cards will be seen on other banks as well. It is expected that other banks will also soon change the rules related to credit cards and remove some facilities and may also make a provision for levying additional charges.
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