India's largest private sector bank, ICICI bank has planned to end lifetime free credit card scheme which was launched by the bank 5 years back in August 2005.
With an aim to gain major portion of the market share, bank had launched the scheme. This initiative of the bank brings a new revolution in the credit card industry as other banks also started fee less regime with their credit cards. Due to the global financial crisis in 2008, forces many banks to compress their credit card segment as the number of default payments had raised.
Commenting on this matter, ICICI spokesperson told that the bank is constantly review its product pricing, based on market dynamics in line with its business strategy. At present, they are not offering free-for-life cards for any new customers. Only set of existing customers are availing a free-for-life card facility. ICICI Credit card product range provides powerful benefits and convenience to its customers and these will be fee-based.
Taking cue from ICICI bank, other banks have also started charging fees for credit cards. The largest lender in the country, SBI which runs its credit card segment in a joint venture with GE Capital Services. Even Standard Chartered bank has withdrawn gold cards from its shelf and for the premium segment, only platinum card left. However, Citi Bank decided not to change its strategy from no-fee to a fee-only structure.
Citibank's Business head for Cards, Sandeep Bhalla told that bank will continue to offer cards with a number of value-adds.