ICICI Bank has announced several updates to its ICICI credit card offerings, impacting benefits such as airport lounge access, spa access, and rewards programs. These changes align with trends from other major issuers, which have introduced adjustments like increased airport lounge and spa access and caps on rewards for categories like utilities and insurance. However, ICICI Bank has also introduced new fees, including add-on card charges. These changes will affect all ICICI Bank credit cards, from the LTF Platinum to the high-end Emeralde Private.
Below is a breakdown of the key changes in ICICI Credit Cards:
Discontinuation of Airport Spa Access
One notable benefit of the Gemstone cards, spa access at domestic airports, has been discontinued for all ICICI Bank credit cards, including the Sapphiro and Emeralde.
Increased Spend Requirement for Airport Lounge Access
The spend requirement for airport lounge access has been significantly raised. Previously, ICICI Bank required a Rs 25,000 spend per calendar quarter; this threshold has now been increased to Rs 75,000 for all cards except the Emeralde PVC and Emeralde Private Metal cards. This change aims to reduce congestion at airport lounges in the coming months.
New Fees for Specific Transactions
Education, Utility, and Fuel Transactions: A 1% fee will be applied to education payments made via third-party apps. Payments made directly to schools or colleges (including international education) will be exempt. A 1% fee will also apply to utility payments exceeding Rs. 50,000 and fuel purchases exceeding Rs. 10,000.
Exclusion of Certain Payments from Annual Fee Waiver
The spend criteria for annual fee reversal and milestone benefits will no longer include rent, government-related, or education payments made via credit card. This change applies to all cards, including the Emeralde Private Metal card.
Capping of Rewards for Certain Categories
- Utility and Insurance Spend: For Rubyx and higher-tier cards (Sapphiro, Emeralde, Emeralde Private Metal), rewards will be capped at Rs. 80,000 each for utility and insurance spends, respectively. For other cards (like Coral, Platinum), the cap is set at Rs. 40,000 each.
- Grocery and Departmental Store Spend: For Rubyx and above cards, rewards will be capped at Rs. 40,000 per month for grocery and departmental store purchases. For other cards, the cap is Rs. 20,000 per month.
New Charge for Add-On Cards
ICICI Bank will now charge an annual fee of Rs. 199 + GST for each add-on card, a change that could set a precedent across the industry.
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Changes to Fuel Surcharge Waiver
- Fuel surcharge waivers will only apply to monthly spends of up to Rs. 50,000 across all ICICI Bank credit cards, including the Emeralde PVC card.
- For the Emeralde Private Metal card, the fuel surcharge waiver will apply to monthly spends up to Rs. 1 lakh.
Updates for Emeralde Credit Cards (PVC and Metal)
- Reward points will no longer be offered for government-related spends.
- The annual fee reversal threshold has been reduced to Rs. 10 lakh per year (down from Rs. 15 lakh).
- Forex markup has been revised to 2% + GST.
These changes from ICICI Bank are somewhat unexpected, given that the bank already has one of the lowest reward rates in the industry. The cuts to benefits, particularly airport lounge and spa access, reflect the high costs associated with maintaining these services. As one of India’s largest credit card issuers, ICICI Bank’s adjustments are likely to have a noticeable impact, particularly at airport lounges.
The introduction of a fee for add-on cards is perhaps the most surprising move. Add-on cards have typically been free across banks, and this change could signal a new trend—though it’s hoped that it doesn’t become widespread across the industry.
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