No more free credit cards by ICICI

Mumbai: With an aim of changing consumer banking strategy, ICICI Bank planned to stop lifetime free credit card scheme. The scheme was launched by the bank way back in August 2005, reports Rupee Times.

The scheme was launched by banks to gain major chunk of the market share, and this move had managed to bring a new wave of change in the credit card industry as other banks also started fee less regime with their cards. The global financial meltdown in 2008 hinted many banks to compress their credit card segment as frequency of default payments had taken a toll. Speaking on this, ICICI spokesperson said, "We constantly review our product pricing, based on market dynamics in line with our business strategy. Currently, we are not offering free-for-life cards for any new customers. We have a set of existing customers who have been offered a free-for-life card. Our credit card product range provides powerful benefits and convenience to our customers and these will be fee-based."

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Following ICICI's footsteps, other banks have also started charging fees for credit cards. Following its footsteps has been 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 Even Standard chartered bank has withdrawn gold cards from its shelf and is only into selling platinum cards which target the premium segment. But Citi Bank decided not to alter its strategy from no-fee to a fee-only structure. Sandeep Bhalla, Business Head for cards for Citibank India said, "We are very much in the market and continue to offer cards with a number of value-adds."