Now pay to even pay your own bank

Have you been paying your credit card bills at a bank branch? You might soon need to alter your habits for some banks have started charging card holders for doing so.

ICICI Bank card holders would need to pay Rs 100 to make credit card payments in cash at ICICI Bank branches, starting June 1, 2008. Standard Chartered Bank has already been levying a charge of Rs 99 since March 2006.

But why pay charges to even pay your bank the due cash? Bankers say they are trying to reduce the burden on short-staffed branches.

Sachin Khandelwal, head of the cards group at ICICI Bank, said, "We are discouraging our customers from depositing cash as there is a transaction cost.

About Rs 100 is what is typically charged and it's not specific to cards. It's a cash deposit charge."

He says to avoid the charge card holders can drop their cheques in a drop-box or do an ECS (electronic clearing service) or auto debit to pay their credit card dues.

R L Prasad, general manager, credit cards and personal loans, Standard Chartered Bank, says that payments made at branch counters are an added facility that the bank provides and hence the charge. "This is a service charge for providing teller facility for making cash payments. Customers are informed of this and all other charges at the time of applying for the card through the most important document (MID)," Prasad said.

In addition, the back of the statement also carries the details of the charges.

Clearly, dropping a cheque in a drop-box a couple of days before the due date is not a solution as cheques take about three days to clear if one stays outside the national capital region of Delhi. "We recognise that cheques take a day or two to clear and hence we encourage our customers to make their payments three days in advance though the cheque may be dated as per the payment due date," said Prasad of Standard Chartered Bank.

As for ECS payments — where a card holder authorises his bank to pay whatever is billed on his — can be risky. If a huge, unwarranted amount gets billed for whatever reason, your bank balance gets debited automatically.

A new payment option is to deposit cash at ATMS. "A PIN-less deposit facility has been launched for the benefit of cards customers at all our ATMs. A customer carrying his/her credit card can use this option for payment," according to Citibank.

Other banks with strong credit card portfolios, such as HSBC Bank, ABN Amro Bank, SBI, Kotak Mahindra Bank and Citibank denied they were charging card holders for making cash payment at branches. Answers from HDFC Bank are still awaited.

But the chances are other banks may follow suit. This is primarily because most banks now penalise customers for using branches and give incentives for using alternate channels such as ATMs and online payments.

For example, demand draft requests at branches could cost you Rs 75, but if the phone banking mode is used, then customer would have to shell out only Rs 50.

A stop-payment order would cost you Rs 50 per cheque (Rs 100 per mandate) if asked for at a branch. But, if one uses the phone banking channel, then HDFC Bank charges only Rs 40 per cheque (Rs 80 per mandate). ICICI Bank doesn't offer any cut for stop-payment via phone banking, but it is free if one uses the internet banking mode.

Now 'Platinum Identity Credit Card' ICICI launches

ICICI Bank, India’s biggest private sector bank, has made announcement ICICI Bankabout the launching of its ‘ICICI Bank Platinum Identity Credit Card,’ which will target the discerning and wealthy customers in order to meet their developing requirements, with a focus on travel as well as lifestyle.

The card offers up a high value scheme, as it brings together shopping, travel and golfing privileges together with a powerful rewards program and distinguished service benefits.

The bank would charge a nominal fee on an annual basis, and the card has a credit limit of Rs 2.5 lakh plus.

Sachin Khandelwal, head- cards product group, ICICI Bank said, “This card is launched keeping in mind the fact that our customers have matured and demanding more exclusive offers. We will offer our customers value and privileges which are, the best in the industry. Keeping in line with the changing lifestyle of our customers, the Platinum Identity product has been designed to make cardholders feel truly special as well as to meet their evolved needs specially related to travel and lifestyle. This is a global offering at a truly competitive price point.”

The different features of the card include accelerated rewards program, exclusive rewards catalogue, an influential air mile conversion option and travel advantages that comprise Rs 10 million air accident insurance and complete fuel surcharge waiver across pumps.

Besides the card also offers a full-fledged concierge service, named i-Assist, which will address the lifestyle needs of the cardholders.

At 12:33 pm, the shares of the bank gained Rs 4.15, to trade at Rs 932.85 on the Bombay Stock Exchange (BSE). The total volume of shares traded was 452,751 at the BSE.