ICICI bank is the first to introduce a fee on rent payments done through its credit cards and others are expected to follow.
ICICI Bank credit card customers will have to pay 1 percent charge as a fee for paying rents from October 20, 2022. The private sector lender informed the same to customers via SMS.
It is meant for cardholders who use their credit cards to pay house rent through platforms like Cred, RedGiraffe, Mygate, Paytm and Magicbricks, among others.
So far, no fee was being levied by any bank or credit card company on such transactions. ICICI bank is the first to introduce a fee on rent payments done through its credit cards and others are expected to follow.
For paying rent via ICICI Bank credit card, the users have to input their details on the platform, then go to the rent payment option and fill in the details like name, bank account number, IFSC code or add the UPI (Unified Payments Interface) address of the landlord and then make the desired payment.
In another development, ICICI Bank has raised its MCLR by 10 bps or 0.10 percent. The hike is applicable to all loan products offered at the floating interest rate.
According to the ICICI Bank website, the one-year MCLR rate has been raised to 8.00 percent, and the overnight and one-month MCLR rate has been increased from 7.65 percent to 7.75 percent. For three months, the MCLR has been raised to 7.80 per cent, and for six months, the new rates are 7.95 percent.
(Edited by : Anshul)
First Published: IST