1. Upfront Joining Fee Now Required
- IDFC First Bank now charges the joining fee upfront before dispatching its Mayura and Ashva credit cards, aiming to discourage non-serious applicants.
- Fees:
- Ashva Credit Card: ₹2999 + 18% GST
- Mayura Credit Card: ₹5999 + 18% GST
- This fee is non-refundable.
2. Compliance with RBI Guidelines
- RBI mandates that fees can only be charged upon activation, and IDFC ensures compliance by allowing online activation before physical card dispatch.
- Activation: Customers can activate their card on the bank’s portal. Only after activation and fee payment is the card dispatched.
3. Explicit Customer Consent Required
- The digital application process includes OTP-based steps to capture explicit consent for the upfront joining fee.
- Compliance with RBI’s master circular on credit cards is ensured by gathering written or digital consent.
4. Background on RBI’s Activation & Fee Policy
- Recent complaints about inactive cards led RBI to strengthen guidelines:
- Banks must seek OTP consent if cards remain inactive for 30+ days.
- Closure of the account must occur within seven days if the customer does not activate or provide consent.
5. Why the Change?
- Some customers had received cards but left them inactive, creating issues for banks. IDFC’s upfront fee model aims to confirm genuine applications.
For more details: IDFC Bank Credit Cards