Beginning May 4, 2025, IndusInd Bank will implement a 1% fee (plus GST) on fuel purchases exceeding ₹50,000 within a single credit card statement cycle. Transactions below the ₹50,000 threshold will not incur any additional charges.

This new fee will apply to all fuel transactions classified under specific Merchant Category Codes (MCCs) — 05983, 05172, 05542, and 05541 — which are typically associated with fuel stations and petrol pumps.

How It Works:

Spend ₹49,500 or less on fuel in one billing cycle: No fee charged.

Spend ₹53,000: A 1% fee on the full ₹53,000 (₹530), plus applicable GST, will be charged.

Important Note: Reversal transactions, such as refunds, will not offset the total fuel spend used to calculate the fee.

Also read | 10% BONUS ON MARRIOTT BONVOY POINTS TRANSFER WITH AMEX PLATINUM CHARGE CARD

While this may be new for IndusInd cardholders, several other Indian banks already follow similar practices. The ₹50,000 cap is generally well above the monthly fuel expenses of most personal users, meaning this change is expected to impact mainly commercial or high-volume fuel users.

To avoid the surcharge, customers are advised to monitor their fuel spending via IndusInd Bank’s mobile app or online banking, ensuring they stay within the limit during each statement cycle.

With this update, IndusInd aligns itself with industry norms, introducing a fee structure that affects only a small segment of high-spending users.

For more such latest updates, click here.