Fees and charges
Joining fees and annual fees
There are joining fees, annual fees and renewal fees applicable on the credit card(s) issued by the Bank. Such fees vary from cardmember to cardmember, and from particular description of credit card to credit card. The applicable fees shall be as communicated to the cardmember at the time of applying for the credit card and/or at the time of issuance of the said credit card. Further, such fees, as applicable, are directly charged to the cardmember's account and are indicated on the card statement accordingly.
Cash withdrawal or advance fees
The cardmember can use the credit card to withdraw cash from ATMs (Automated Teller Machines) in India or overseas in accordance with the compatibility of the Credit Card at the said ATM(s). A transaction fee shall be levied on all such withdrawals and would be billed to the cardmember in the next statement. The cash withdrawal transaction attracts a fee of 2.5% (subject to a minimum of Rs 150 for domestic ATM withdrawal and Rs 250 for International ATM withdrawal). The transaction fee is subject to change at the sole discretion of the Bank. Further all cash withdrawal transactions shall also carry a finance charge from the date of withdrawal until the date of full and final payment.
Schedule of charges and interest rates
i) All charges and fees, as applicable from time to time, are payable by cardmember(s) towards the services provided by the Bank to the cardmember(s) and/or for defaults or delays committed by the cardmember towards payments or otherwise of their respective credit card account(s).
ii) The Bank exclusively retains the right to alter any or all charges or fees from time to time or to introduce any new charges or fees, as it may deem appropriate, upon issuing at least a 30 day prior notice to the cardmember of such change or alteration in the charges or fees. It is clarified that the said change may be indicated or communicated to the cardmember through any media chosen exclusively by the Bank in its sole discretion.
These charges and conditions are subject to change without prior notice and also under various marketing programs. Service Tax of 12.36% is applicable on all fees, interests and other charges.
Finance Charges
I. Finance charges are payable at the monthly percentage rate on all charges including cash advances.
II. Financial charges also accrue on
a. Cash withdrawal from ATMs and ordering demand drafts.
b. For purchases, the finance charges accrue only if the total outstanding is not paid in total by the payment due date.
c. Late payment charges will be applicable, if minimum amount due is unpaid after payment due date.
d. Overlimit charges are payable on total outstanding exceeding the credit limit subject to a minimum of Rs 300.
e. Incase of balance transfer from other credit card accounts finance charges accrue immediately from the date of issue of banker's cheque on the transferred amount and on any purchase amount outstanding on your card account.
f. Finance charges payable are debited to your card account on the last date of each statement period and are shown on your statement.
g. The finance charges as above will continue to be payable even after the closure of the card account till the outstanding on the card is cleared fully.
h. For the finance charges applicable to your card account please refer to the schedule of charges. These charges can be reduced under different marketing programs or promotions. The marketing promotions vary from time to time and any changes will be communicated by the Bank to you.
i. The Bank may vary the charges, finance charges, fees and or cash advance fee for all or some of its facilities.
Interest Free Grace Period:
The interest free grace period could range from 20 to 50 days. However this is not applicable if the previous month's balance has not been cleared in full or if you have availed of cash from an ATM, or you have any outstanding towards Balance transfer.
* When does the customer pay interest?
The customer pays interest when he does not pay off his full beginning balance by the payment due date.
In such cases where there is some outstanding balance,
The following are the criteria for a customer to NOT PAY INTEREST
* Beginning balance is zero.
Has a beginning balance but pays off 100% of his full beginning balance by the payment due date.
Does not have any outstanding towards Balance transfer
* Interest Calculation-Retail Purchases
On the statement date, accrued interest will be posted on the account if the card account is a revolving card account.
Revolving Account - A revolving account is the one in which the customer does not pay off the entire balance outstanding (i.e. 100%), as of last statement by his payment due date.
* Interest Calculation Cash
Interest is accrued from the transaction date.
* How is cash advance different from a retail purchase?
Cash transactions always accrues interest versus retail purchases where interest accrual depends on the payment of 100% balance payment in full by payment due date.
Currently interest is also charged on all fees and interest levied by the Bank.
Example for Interest Computation
Assume that you have paid all previous dues in full and do not have any amount outstanding in your credit card account. You have purchased household goods for Rs 25,000 on 12th June and withdrawn cash from ATM for Rs 5,000 on 15th June. Your monthly statement is on 20th of every month. On 20th June, you would be levied interest on Rs 5,000 cash withdrawal for 6 days @ 2.95% per month ie, 5000* 6 days* 2.95%*12 months/360 days = Rs 29.50. Your due date for 20th June statement is 10th July and you pay Rs 5,000 on 10th July and you also make a fresh purchase of Rs 10,000 on 11th July, interest to be levied on 20th July would be as under:
| Interest on Rs 25,000 @ 2.95% per month for 12th June to 20th July (39 days) | 958.75 |
| Interest on Rs 5,000 @ 2.95% per month for 21st June to 10th July (20 days) | 98.33 |
| Interest on Rs 10,000 @ 2.95% per month for 11th July to 20th July (10 days) | 98.33 |
| Interest on Rs 33.15 (Interest + Service Tax levied in last statement) @ 2.95% per month for 20th June to 20th July (31 days) | 1.01 |
| Total interest charged on 20th July | 1156.42 |
Actual interest calculation would vary based on the individual purchase and revolve behaviour.
Late Payment Fee Calculation
Late Payment Fee is charged to the cardmember if there has been no payment or a payment less than the Minimum Amount Due is received by the payment due date. Late Payment Fee is charged at the rate of 30% of Minimum Due Amount, subject to a minimum of Rs 250.00 and a maximum of Rs 500.00.
Example:
The minimum payment due (MAD) is Rs 3,400.00
Statement date is 15/11/2006
Payment due date is 04/12/2006
In the above case if the customer does not make a minimum payment of Rs 3,400.00 by the payment due date ie, 04/12/2006, a Late Payment Fee of Rs 500 will be levied on 09/12/2006. This is worked out as per the following logic:
30% of current due is Rs 1,020.00
Minimum Late Fee charge is Rs 250.00
Maximum Late Fee charge is Rs 500.00
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