IndusInd Bank New Charges: IndusInd Bank has introduced 1% Charge on Credit Card Educational Payments
IndusInd Bank has introduced a 1% fee on utility bills and wallet recharges since October 2024. Beginning January 2025, the bank will extend similar fees to education-related payments. This change applies to transactions exceeding ₹45,000, where a 1% fee plus applicable taxes will be charged. Payments within the ₹45,000 limit remain free of additional fees when processed through third-party platforms, offering a cost-effective solution for students and parents.
IndusInd Bank Credit Card Educational Payment Guidelines
Charges Overview
- Fee Threshold: No fees for education-related payments up to ₹45,000 per monthly statement cycle through platforms such as PhonePe, Paytm, NoBroker, EaseMyDeal, Super Pe, and Locon Cred.
- Fee for Excess Amounts: A 1% fee plus GST will apply to the portion exceeding ₹45,000.
Example:
If a customer pays ₹45,500 in January, a 1% fee of ₹5 (plus GST) will be charged on the ₹500 exceeding the limit.
| Transaction Amount | Charge |
|---|---|
| Up to ₹45,000 | No fee |
| Above ₹45,000 | 1% + GST |
Illustrative Example
Scenario:
Sarah uses her IndusInd Bank Credit Card to pay for her gym membership, with her statement cycle running from the 5th to the 4th of the next month.
- Month 1 (November 2024):
- Gym Fees: ₹42,000
- No extra fee as the amount is below ₹45,000.
- Month 2 (December 2024):
- Gym Fees: ₹46,000
- A 1% fee of ₹10 is applied to the ₹1,000 exceeding the limit.
Sarah’s statement for Month 2 will include the additional charge.
Conclusion
IndusInd Bank’s new 1% fee on educational payments mirrors a broader trend among banks like HDFC, YES, and ICICI. These charges aim to manage operational costs while maintaining service quality. Customers are advised to stay informed about these changes to optimize their financial planning. While fees apply to amounts over ₹45,000, IndusInd Bank continues to provide fee-free payments within the limit, supporting students and parents in managing education-related expenses.
