IndusInd Bank recently implemented a 1% fee on utility bills and wallet recharges in October 2024. Now, they are extending similar fees to educational payments beginning January 2025. Customers will be charged a 1% fee plus taxes on any education-related transactions that exceed ₹45,000. Payments up to this limit can still be made without any extra charges through third-party platforms, making it easier for students and parents to manage their expenses.
Charges on Educational Payments
Starting from January 2025, cardholders can make education-related payments through third-party platforms like PhonePe, Paytm, No Broker, Easemydeal, Super Pe, Locon, and Cred without any fees for amounts up to ₹45,000 in a monthly statement cycle. If the total exceeds ₹45,000, a 1% fee plus GST will apply.
| Educational Payments | Charges |
| Above ₹45,000 | 1% |
Illustration
Imagine Sarah, who uses her IndusInd Bank Credit Card to pay for her daughter’s school fees. Her statement cycle runs from the 5th to the 4th of each month.
School Fees
- Month 1 (November 2024): ₹42,000
No extra charge is applied since the total amount is under ₹45,000.
- Month 2 (December 2024): ₹46,000
This time, Sarah is charged an additional 1% + GST fee because her total spending is more than ₹45,000. In Month 2, she will be charged extra for her statement because she went over the spending limit.
Complete details are available in this circular issued by IndusInd Bank.
Bottom Line
IndusInd Bank has introduced a 1% fee on educational payments and is following the trend of implementing fees as other banks have done. By following this practice, IndusInd Bank is adjusting itself with different banks, guaranteeing they can continue to offer a range of services while managing costs. Banks like HDFC, YES, and ICICI have also started charging fees for educational payments. Customers should stay updated on these changes to make smart choices about their education expenses. IndusInd Bank allows payments of up to ₹45,000 without extra fees, making it easier for students and parents to manage costs.