ICICI Bank is making significant adjustments to its credit card benefits and fee structure, impacting lounge access, reward point caps, fees, and spending limits across several categories. Here’s a detailed breakdown:
1. Higher Spend Threshold for Lounge Access
- Lounge access will now require a quarterly spend of ₹75,000, significantly higher than previous thresholds. Cardholders must meet this in the prior quarter to qualify for lounge access in the following one.
2. Reward Points on Utilities and Insurance
- Reward points on utility and insurance transactions are capped at ₹40,000 to ₹80,000 monthly, depending on the card. This change impacts users who rely on rewards from regular, high-value bills in these categories.
3. Discontinuation of Spa Access Benefits
- Spa access, previously available at certain airports, will no longer be a benefit after November 15, reducing luxury perks for frequent travelers.
4. Elimination of Rewards on Government Transactions
- Government-related expenses, such as taxes and fines, won’t earn reward points on cards like the Emeralde Mastercard Metal, removing a once-attractive reward category.
5. New Fees on Specific Transactions
- A 1% fee applies to education payments made through third-party services, utility spends exceeding ₹50,000/month, and fuel spends over ₹10,000/month. This introduces extra charges for high-volume users in these categories.
6. New Limit on Fuel Surcharge Waiver
- Fuel transactions above ₹50,000 (₹100,000 for Emeralde Mastercard) will no longer be eligible for the fuel surcharge waiver. This limit adds an additional cost to high-spend customers on fuel.
7. Annual Fee Waiver Reduction for Emeralde Cards
- The threshold for waiving annual fees on Emeralde cards drops from ₹15 lakhs to ₹10 lakhs. This update makes it easier to achieve fee waivers for mid- to high-spend cardholders.
8. Reward Caps on Grocery Spends
- Rewards on grocery and departmental store purchases are capped at ₹20,000 to ₹40,000 monthly, limiting benefits for families who use credit cards for grocery expenses.
9. Exclusions for Milestone Benefits and Annual Fee Reversals
- Spend in specific categories like rent, government transactions, and education no longer count toward milestones and fee waivers, adjusting the reward program’s value for users in these categories.
10. Late Payment Charges Revised
- Late fees have been updated across spend levels, with charges now ranging from ₹100 to ₹1,300 based on the outstanding amount, encouraging timely payments to avoid higher costs.
11. Fee for Add-On Cards
- There will now be a ₹199 fee for each add-on card, charged in the anniversary month, which introduces an added expense for users with supplementary cards.
Context for the Changes
This restructuring is part of ICICI Bank’s strategy to balance long-term profitability with rewards. Like other major banks, ICICI aims to sustain rewards programs by optimizing benefits based on consumer spending trends and categories that contribute most to rewards costs. For full specifics, cardholders should check ICICI Bank’s website or recent updates to their account terms.
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