It has been reported that Axis bank customers will now be charging more for the credit card dues. The Axis bank has increased the rates on credit card dues from 2.95% to 3.25%. Jairam Shridharan, head of consumer lending and payments at Axis Bank.reported that the customers who will not pay the charges on time will now be charged more paying the outstanding dues. He further stated that given the economic and risk conditions the bank has decided to hike the rates for the customers whose cards were generated at lower rates.
Further he said that we want to ensure that depending on the risk of each segment, the credit cost per customer is adequately covered. Credit cards are considered as riskier assets for the banks. Axis bank is of the larger issuer of the credit cards. Bank may be required to pay an additional charge of Rs 3 on each debit transaction to the bank whose ATM any axis bank customer uses.