When choosing a credit card, it’s essential to have a clear understanding of all the associated fees and charges. For those considering an RBL Bank Credit Card, being informed about the financial implications can help make better decisions. In this article, we will cover the various RBL Bank credit card fees and charges, providing you with a clear, detailed breakdown of each component.
Annual Fee
The annual fee is the primary cost associated with holding an RBL Bank credit card. Depending on the type of card, the annual fee can vary, but most cards have a fee structure based on the rewards and benefits they offer. Premium cards with extensive perks often have higher annual fees, while basic cards come with minimal charges. Here’s a quick overview:
- Entry-level cards: Fees can start from as low as ₹500.
- Mid-tier cards: Fees range between ₹1,000 – ₹2,000.
- Premium cards: Annual fees can be upwards of ₹5,000.
It’s worth noting that in some cases, the annual fee is waived off during the first year or for subsequent years if you spend a specified amount on the card.
Joining Fee
Most RBL Bank credit cards come with a one-time joining fee. This is the fee you pay when you first apply for the card and receive approval. The amount of this fee depends on the type of card:
- Basic cards may have a joining fee as low as ₹500.
- Premium cards could come with a joining fee of ₹5,000 or higher.
In many instances, RBL Bank offers introductory offers where the joining fee is offset with equivalent rewards in the form of vouchers, welcome points, or cashback.
Late Payment Charges
Not making your payment on time can result in late payment fees. These charges depend on your total outstanding balance and can significantly add up if you’re not careful. RBL Bank’s late payment charges typically follow this structure:
- For balances below ₹100: No charges.
- For balances between ₹100 and ₹500: ₹100.
- For balances between ₹500 and ₹5,000: ₹400.
- For balances between ₹5,000 and ₹10,000: ₹500.
- For balances over ₹10,000: ₹700.
Making timely payments can help you avoid these unnecessary charges.
Finance Charges (Interest Rates)
When cardholders do not pay their total outstanding amount by the due date, finance charges or interest rates are applied. The interest rates for RBL Bank credit cards can be on the higher side and are applied monthly on the unpaid amount. Typically, the interest rate is around 3.50% per month (or 42% annually).
This is why it is crucial to either pay your outstanding balance in full or at least pay more than the minimum due to avoid interest piling up.
Cash Withdrawal Charges
Using a credit card for cash withdrawals from ATMs is generally discouraged due to the hefty fees and interest associated with this transaction. RBL Bank levies a cash advance fee of 2.5% of the withdrawn amount or ₹500 (whichever is higher). Additionally, the withdrawn amount starts attracting interest from the day of withdrawal until it’s repaid.
There’s no interest-free period for cash advances, so it’s advisable to use this feature only in cases of absolute necessity.
Overlimit Fee
If your spending exceeds your approved credit limit, an overlimit fee is charged. For RBL Bank credit cards, this is typically 2.5% of the overlimit amount or ₹600, whichever is higher.
While exceeding your limit may seem convenient, it not only attracts extra fees but can also negatively impact your credit score. Hence, it’s always best to monitor your spending and stay within the approved limit.
Foreign Currency Mark-up Fee
Whenever you use your RBL Bank credit card for transactions in a foreign currency, a foreign currency mark-up fee is applied. This fee typically ranges from 1.99% to 3.5% of the transaction amount, depending on the card type. Premium cards usually have lower mark-up fees, whereas standard cards have a higher percentage.
For frequent international travelers, choosing a card with a lower foreign currency mark-up fee can save you a significant amount in the long run.
Card Replacement Fee
If your RBL Bank credit card is lost, damaged, or stolen, you’ll have to pay a replacement fee for a new card. The standard card replacement fee is ₹200, although it can be waived off in specific circumstances, such as if the card is replaced within a certain period after it was first issued.
Rewards Redemption Fee
While many RBL Bank credit cards offer rewards points for every rupee spent, redeeming these points is not always free. There is a redemption fee applied when you choose to convert your points into vouchers, flight tickets, or merchandise. The standard redemption fee for RBL Bank cards is ₹99 per redemption request.
It’s important to calculate the value of the rewards you’re redeeming to ensure the redemption fee is worth paying.
Other Miscellaneous Charges
In addition to the standard fees listed above, there are other potential charges associated with your RBL Bank credit card, including:
- Balance Transfer Fee: Transferring balances from another credit card to your RBL Bank credit card comes with a fee of 1% of the transferred amount, subject to a minimum of ₹250.
- Duplicate Statement Fee: If you request a duplicate statement, RBL Bank may charge you ₹100 per statement.
- Outstation Cheque Processing Fee: Cheques drawn on non-local banks may attract a processing fee of ₹100.
How to Avoid These Fees and Charges
To make the most out of your RBL Bank credit card while minimizing costs, consider these strategies:
- Pay your bills on time to avoid late payment fees and interest charges.
- Stay within your credit limit to prevent overlimit fees.
- Avoid using your credit card for cash withdrawals, as the charges can be steep.
- If you travel internationally frequently, choose a card with a lower foreign currency mark-up fee.
- Always monitor your rewards points and redeem them strategically to get the maximum value.