The revisions include a new method for calculating interest after partial bill payments, changes to fuel transaction fees, the introduction of charges on high-value transport spends, revised Dynamic Currency Conversion (DCC) fees on international transactions, and higher late payment charges for certain outstanding balance slabs.
The most significant change applies to the way interest is calculated after a cardholder makes a partial payment. Under the revised policy, customers who do not pay their statement balance in full will continue to incur interest not only on the unpaid amount but also on new purchases made after the outstanding balance is cleared.
The interest-free period will be restored only after two consecutive statement cycles are paid in full and on time. Previously, the interest-free period resumed once the outstanding balance was fully repaid.
The bank has also lowered the threshold for fuel transaction fees on several card variants. For most standard-tier cards, a fee of 1% plus applicable GST will be charged on cumulative fuel spends exceeding ₹30,000 per statement cycle, compared with the earlier threshold of ₹50,000.
The threshold remains unchanged at ₹50,000 for select mid- and premium-tier cards, including the Tiger Credit Card. Certain premium cards such as Pioneer Private, Pioneer Heritage and Indus Solitaire remain exempt.
In another change, IndusInd Bank will levy a fee of 1% plus GST on cumulative transport-related spends exceeding ₹40,000 in a statement cycle. The charge will apply to categories such as cabs, railways, buses, tolls and related transport services, while air travel transactions will remain excluded. The fee will not apply to Pioneer Private, Pioneer Heritage and Indus Solitaire credit cards.
The bank has also revised its Dynamic Currency Conversion (DCC) charges, which apply when international merchants bill customers in Indian rupees instead of the local currency. For standard-tier cards, including Tiger, the DCC fee will increase to 2% plus GST from 1% plus GST. Premium-tier cards will continue to attract a DCC fee of 1% plus GST.
Additionally, late payment charges have been increased for several balance slabs. For example, the fee for outstanding balances between ₹501 and ₹1,000 will rise from ₹350 to ₹500, while balances between ₹5,001 and ₹10,000 will attract a charge of ₹750 compared with ₹550 earlier. Charges for balances above ₹25,000 remain unchanged. No late payment fee applies to Club Vistara Explorer, Pioneer Private and Pioneer Heritage credit cards.
The revised terms and charges will come into effect from June 15, according to the bank’s notification to credit card customers.
