One of the largest lending banks of the Nation - ICICI bank has decided to charge its customers on reclaim their points collected on credit and debit cards. It has been reported that a service charge plus Tax will be levied from the credit card users from June 12, 2014 onwards. On every redemption request for the collection of payback points earned on credit card, debit card or my saving reward customers will be charged now.
The charges are applicable on reward scheme of ICICI Bank in collaboration with payback, a customer loyalty programme and rewards points. The bank will be charging a fee of Rs 99 plus tax on any catalogue based redemptions. For the online redemption made by the customers Rs 25 plus tax will be charged by the customers.
RBI has ordered banks not charge the customers on Inoperative accounts and no penalty on non-maintenance of minimum balance, so banks said that customers will have to pay more on other services. CEO of the bank reported that normally, banks assume that a certain percentage of points will be redeemed. In case the number is not being achieved banks may charge even for redemptions and restore the programme to profitability.