Bank to levy new 1% charge on credit cards

Mumbai: Leading private sector bank in the country, ICICI Bank has decided to levy a new charge of 1% on payment of rent using credit cards. ICICI Bank has over 11 million credit card holders in India. The new charge will come into effect from October 20. Thus, ICICI Bank has become the first bank in the country to levy a charge on rent payments using credit cards.

‘Dear Customers, starting 20-Oct-22, all transactions on your ICICI Bank Credit Card towards rent payment will be charged at 1% fee.

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As per experts, the lender has introduced this new fees to prevent the misuse of cards. Some cardholders make payments to their relatives or friends by adding them as landlords to convert the payment into cash. Thus they can avoid withdrawing money using credit cards. Banks usually  levy higher charges for cash withdrawal from credit cards. Banks charge somewhere around 2.5-3% for cash withdrawals from ATMs using credit cards.