Starting January 2025, IndusInd Bank will introduce a 1% fee + taxes on education-related payments exceeding ₹45,000 per month. Here’s everything you need to know about this update and how it might affect your spending.
What’s Changing?
1. Utility bills & wallet recharges: A 1% fee has been in place since October 2024.
2. Education payments: A similar 1% fee + GST will be charged on amounts exceeding ₹45,000 per monthly statement cycle.
Key Highlights
1. Exemption for Payments Within ₹45,000
- Education-related payments up to ₹45,000 in a statement cycle will not attract any additional charges.
- These payments can be made through platforms like PhonePe, Paytm, No Broker, EaseMyDeal, Super Pe, and Locon Cred.
2. Fee for Exceeding ₹45,000
- A 1% fee + GST applies to the amount exceeding ₹45,000.
- For instance, if the total payment is ₹50,000, the 1% fee will apply to the excess ₹5,000, resulting in an additional charge of ₹50 + GST.
How This Affects You
- For Students & Parents: If you frequently use your IndusInd credit card for school, college, or other education-related payments, plan your transactions to stay within the ₹45,000 limit and avoid extra charges.
- For High-Value Transactions: Consider splitting large payments across different statement cycles or payment methods to minimize additional fees.
- GST Impact: Don’t forget that taxes on the fee will slightly increase the overall cost.
Tips to Manage Payments Smartly
- Track Monthly Payments: Keep an eye on your education-related expenses to ensure they stay within the fee-free threshold.
- Use Third-Party Platforms: Platforms like PhonePe or Paytm may offer seamless processing for smaller payments under ₹45,000.
- Evaluate Alternatives: If your education payments consistently exceed ₹45,000, explore other credit cards or payment methods with no such fees.
For more visit IndusInd Bank Credit Cards
This move adds to the existing charges on utility and wallet transactions, signaling a shift in fee structures for IndusInd Bank credit cardholders.