Important News for HDFC Bank Customers! Bank has introduced new rules for Credit Cards

HDFC Bank has made some changes to its credit card terms, which will take effect from August 1st. These changes are in line with what other banks have been doing, such as introducing charges for rental and educational transactions made through third-party platforms, as well as charges for large utility bill payments.

The reason behind these changes is the recent announcement of revised cashback structures and rewards on certain HDFC Bank credit cards. The bank wants to align its terms with these new offerings.

Here are the key changes that HDFC Bank has announced for credit cards:

1. Rental transactions made using HDFC Bank credit cards through third-party payment apps like CRED, PayTM, Cheq, MobiKwik, and Freecharge will now have a 1 percent fee on the transaction amount, capped at Rs 3,000 per transaction.
2. Educational expenses paid using HDFC Bank credit cards through third-party payment apps will also incur a 1 percent fee, capped at Rs 3,000 per transaction. However, if you make educational transactions through college or school websites or their POS machines using HDFC Bank credit cards, there will be no charges. International education payments are also exempt from this fee.
3. Large utility bill payments made with HDFC Bank credit cards will now have a fee. If you spend less than Rs 50,000 per transaction on utilities, there will be no additional charges. However, if you spend more than Rs 50,000 per transaction, a 1 percent fee will be charged on the entire amount, capped at Rs 3,000 per transaction.
4. If you spend less than Rs 15,000 per transaction on fuel, there will be no additional fee. But if you spend more than Rs 15,000 per transaction, a 1 percent fee will be charged on the entire amount, capped at Rs 3,000 per transaction.
5. The bank is introducing rewards redemption charges. If you used to redeem your reward points for a statement credit, you will now be charged a fee of Rs 50. It’s advised to redeem your reward points before August 1st to avoid this charge.
6. The annual and renewal fees for 6E Rewards credit cards are being increased. Previously, the bank charged Rs 1,500 plus GST for the annual/renewal fees on 6E Rewards XL–IndiGo HDFC Bank Credit Card and Rs 500 plus GST on the 6E Rewards–IndiGo HDFC Bank Credit Card. From August 1st, the fees for 6E Rewards XL – IndiGo HDFC Bank Credit Card will be Rs 3,000 plus GST, and for 6E Rewards – IndiGo HDFC Bank Credit Card, it will be Rs 1,500 plus GST.
7. If you choose the Easy-EMI option at any online or offline store, the bank will charge an EMI processing fee of up to Rs 299. HDFC SmartEMI allows users to convert their credit card bills into monthly installments.
8. HDFC Bank has also revised its late payment fee structure. The charges will range from Rs 100 to Rs 1,300, depending on the outstanding amount.

Experts in the credit card industry believe that these changes by HDFC Bank are not as drastic as those made by other banks. The charges for utility bill payments are similar to what Yes Bank and IDFC First Bank recently announced.

One important thing to note is that HDFC Bank credit cardholders should now avoid using third-party payment apps like CRED, Paytm, CheQ, and Mobikwik. These apps, which were previously used to earn rewards when making education or rent payments, will now incur charges from the bank itself.