Credit card: Citi Bank changes late payment charge

Citibank has announced to change the credit card late payment charge from 25 January 2021. The bank has now increased the late payment charge. However, the late payment zero (Nil), which is on arrears from zero to Rs 1,000, has been increased to Rs 2,000. Meaning that if there is an outstanding of up to Rs 2000, then late payment charge will not be levied.

Most of us use credit cards. We feel that shopping on credit cards gives the benefit of free credit period by shopping on credit for free. Experts suggest that it allows you to borrow for free, provided you repay it within the due date. What we don’t understand, however, are the fees that come with it. Although they are not hidden charges at all. But, when you start using it, you are surprised at how much these are.

Citibank has made changes to its credit card late payment charge or (LPC). This change is to come into effect from 25 January 2021. Citibank has sent information about this to its credit card holders. Now, no late payment charge will have to be paid for payment of zero to 2,000 rupees. Earlier this limit was Rs 1,000. Late payment charge will be Rs 600 on amount ranging from Rs 2,000 to 7.5 thousand rupees while Rs 950 on late payment ranging from 7.5 to 15 thousand rupees. Late payment charge of more than Rs 15,000 will be charged at Rs 1,300.

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