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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If you have this card, then know that now the ways of spending, getting rewards and using the benefits are going to change.

You will still get these benefits

You will continue to get 4 reward points for every Rs 150 spent. Apart from this, you will also get the benefit of free use of domestic airport lounge twice every quarter. Facilities like surcharge waiver on fuel and railway ticket booking will also continue.

Limit imposed on fuel expenses

Now you will get 1% surcharge discount only on fuel expenses ranging from Rs 500 to Rs 5000. You will also be able to get a maximum discount of up to Rs 3500 in a year.

New limit for earning reward points

Now, reward points will be available only on spending up to Rs 70,000 on education and insurance in one statement cycle. Points will be available only on spending up to Rs 50,000 on utility bills and Rs 40,000 on government expenses.

Points will no longer be available on these expenses

Adding money to the wallet, paying rent, buying fuel and spending on online games will no longer earn you any reward points. Also, these expenses will no longer be counted in the milestone benefit.

The value of reward points has decreased

Now the value of each reward point has been reduced from 25 paise to 20 paise. To redeem in cash, it will be necessary to have at least 2000 points.

Lounge access will now be linked to expenses

Now you will get free airport lounge access only if you spend at least Rs 75,000 in the previous quarter. Only then will you get this benefit in the next quarter.

Interest rates and new charges also added

Now the interest rate on the card has increased from 3.5% to 3.75% per month. Along with this, a 1% transaction fee will also be charged on many expenses – like adding money to the wallet, online gaming, government expenses of more than 10 thousand rupees, utility bills of more than 50 thousand and fuel expenses of more than 35 thousand.

Fees will be levied on education fees as well

If you pay school or college fees through a third party app (like PhonePe, CRED or Mobikwik), then 1% charge will be levied. But if you pay directly through the school’s website or machine, then this charge will not be levied.

If auto debit fails then you will have to pay a penalty

If the auto debit EMI of your card fails, then you will have to pay a penalty of 2% on the total outstanding amount. This charge can be a minimum of Rs 450 and a maximum of Rs 5000. So if you use this card, then plan your expenses keeping these new rules in mind.

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The post Credit Card Rule: Bank changed credit card rules, will be applicable from June 1 first appeared on Rightsofemployees.com.

SBI Card has announced these important changes for its credit card users, which have come into effect from November 1, 2024. ICICI Bank has also changed the rules of its credit card. The new rules will come into effect from November 15, 2024. The bank has reduced many benefits like airport lounge access, insurance and late payment fine. Now there will be no reward on government transactions and if the fuel expenditure is more than Rs 1,00,000 per month then surcharge waiver will not be available.

SBI card new rules

SBI has decided to charge 1% extra on payment of utility bill if the amount exceeds Rs 50,000 in the statement cycle. However, no additional charge will be levied on bills less than Rs 50,000. Apart from this, the finance charge has been increased to 3.75% for all unsecured credit cards, which will not be applicable on Shaurya and Defense Credit Cards. The validity of reward points of SBI card has been changed. Now these reward points will be valid for a limited time only, so it will be necessary to use them on time. If you have made a purchase through EMI with your credit card, then some additional charges may be levied on it. Therefore, it is important to get complete information related to the new charges before making any big purchase.

Change in rules of ICICI Bank Credit Card

Private sector bank ICICI Bank has also changed the rules of its credit card. The new rules will come into effect from November 15, 2024. The bank has reduced many benefits like airport lounge access, insurance and late payment fines. Now there will be no reward on government transactions and there will be no surcharge waiver if fuel expenses are more than Rs 1,00,000 per month.

ICICI Bank has changed the reward point redemption process for its credit cards. Reward point redemption in some categories will be different from before and there may be some limits on it. Interest rates have been changed for purchases made on EMI. ICICI Bank has said that the new interest rates may vary depending on the type of card and transaction.

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IDFC First Bank had some time ago announced changes in all credit cards except its super-premium IDFC First Private Credit Card, which will be applicable from May 1, 2024. Under this, the private bank will reduce reward points for online spending, implement more spend-based criteria for airport lounge access and update the terms and conditions for utility and fare payments.

how much was cut
Reward points will be tripled (3X) for online spends up to Rs 20,000 in a statement cycle. At present it is 6 times (6X). However, cardholders can get 10 times (10X) reward points on spends above Rs 20,000 per month. But the reward points for education, wallet reloads and government service transactions will be changed to 3X. IDFC First Bank said that there will be no surcharge on bills below this limit, but 1% credit card fees and GST will be charged on bills above this limit.

Free Domestic Airport Lounge Visit
However, this utility surcharge will not be applicable on First Private Credit Card, LIC Classic Credit Card and LIC Select Credit Card. Regarding airport lounge access, the number of free domestic airport lounge visits on IDFC First Select Credit Card will be reduced from four to two every quarter. Whereas on First Wealth Credit Card, users will now be able to use the lounges of both domestic and international airports twice per quarter, which was earlier four. The bank will increase the fees for fare transactions to Rs 249 per transaction or 1% plus 18% GST (whichever is higher).

These banks have also cut benefits
Axis Bank, ICICI Bank and Yes Bank have also reduced the benefits on their cards. Some time ago, ICICI Bank had increased the minimum spend required for complimentary airport lounge access to Rs 35,000 on several credit cards including the Coral Credit Card and MakeMyTrip ICICI Bank Platinum Credit Card. Meanwhile, Yes Bank has now increased the minimum spend to avail the domestic lounge access benefit on all its credit cards to Rs 10,000. Apart from this, Axis Bank will make changes in Magnus Credit Card from April 20.

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The post Credit Card New Rule: New credit card rule comes into effect from today, check immediately first appeared on Rightsofemployees.com.

Yes Bank has changed the rules to avail its domestic lounge access. According to the latest report of Live from Lounge Report, the bank said that all its credit card holders will have to spend a minimum of Rs 10,000 in the current quarter to get lounge access in the next quarter. Special benefits are given under lounge access facility. This includes food, WiFi facility, airport lounge access for bathing and rest.

Changes in the rules will come into effect from April 1, 2024. Credit card holders will have to make necessary spends from December 21, 2023 to March 20, 2024 to avail lounge access. Understanding the cost associated with availing lounge access, banks are no longer offering this ‘free’ benefit to customers holding only basic credit cards.

Which cardholders will it be affected by?

This rule change will impact credit cards including Yes Marquee, Yes Select (formerly Yes Prosperity Edge), Yes Reserve (formerly Yes First Exclusive), Yes First Preferred, Yes Bank Elite (formerly Yes Premia) But it is not limited to these. This will also affect BYOC and Yes Wellness Plus cards. Along with this, after HDFC Bank Group got approval from the Reserve Bank of India to increase its stake in Yes Bank to 9.5 percent, Yes Bank shares saw an increase of up to 13% on Tuesday, February 6. After this rally the share reached Rs 25.70.

Adding to the banking sector update, ICICI Bank is also set to implement changes in its standards for availing airport lounge access from April 1, 2024. Customers holding certain cards will now have to spend at least Rs 35,000 in the previous calendar quarter to unlock airport lounge access for the next quarter. Meanwhile, Axis Bank has informed its card members about the changes in ‘Axis Vistara Infinite Credit Card’. According to the report of Live from Lounge, the gold status benefit initially available for the first year will no longer start automatically from the second year.

The post Credit Card New Rule : Credit card rules are going to change from April 1, know what can be the changes first appeared on Rightsofemployees.com.