No late fees on credit card dues for a month
There is some relief for credit card holders from the Reserve Bank of India. RBI has asked banks not to charge late payment fees from the credit card users if bill is not paid till generation of the next bill. But no change has been done on levying interest charges that means banks would still levy hefty interest rates on the unpaid amount of bill after due dates till the payment is made.
What you have to pay in case of late payment of credit card bill:
1. Late Payment Charges:
This charge varies from banks to banks but generally range between Rs.100 to Rs.700. As for example Citibank late payment fee structure is as follows:
- Rs.300 for unpaid balance up to Rs.10,000
- Rs.600 for unpaid balance from Rs. 10,001 – 25,000
- Rs.700 for unpaid balance above Rs.25,000
2. Interest on the amount not paid:
Banks levy interest at the rate of 2% to 3% per month on the unpaid amount of bill. Suppose you have got bill of Rs.50,000 but paid only Rs.20,000, the bank would charge interest on the remaining amount Rs.30,000.
Scenario Prior and After RBI’s Guideline
- 20th June 2014:- Used Credit Card for Online Purchase for Rs.20,000.
- 5th July 2014:- Credit Card Bill Generated
- 25th July 2014:- Credit Card Bill Payment Due Date
- 5th August 2014:- Next Credit Card Bill Generation Date
Earlier you needed to pay late fee if the payment was not made till 5th July but as per the new guideline of RBI, no late payment fees would be imposed even if the payment is made upto 4th August.
In this case you got grace period of 10 days.
Point to Note
But remeber there is no immunity from interest on the late payment means you would still be liable to pay interest on the amount paid after due date.