IndusInd Bank to Charge 1% Fee on Credit Card Fuel Transactions

Starting 4th May 2025, IndusInd Bank will be imposing a new charge on fuel transactions. Customers will now be charged a 1% fee (plus GST) on total fuel spending above ₹50,000 in a single statement cycle. If your total fuel expenses remain under ₹50,000 during the cycle, no extra charges will apply. As per the new update, the new fee structure applies to all fuel-related transactions made under specific Merchant Category Codes (MCC) – 05983, 05172, 05542, and 05541. These codes are typically used by petrol pumps and fuel service stations.

For instance, if you spend ₹49,500 or less on fuel in a statement cycle, you won’t be charged anything extra. However, if you spend ₹53,000, you will be charged 1% of the total ₹53,000, which is ₹530, plus applicable GST.

Additionally, reversal transactions, such as refunds, will neither contribute to your spending total nor lower the fee. The calculation will be based on the full, unreversed amount spent during that cycle.

While this may seem like a new move for IndusInd customers, many other Indian banks have already implemented similar charges. In most cases, regular bank users won’t be impacted by this change. Spending over ₹50,000 on fuel in a single month is quite rare for personal use. Most individuals, even those commuting daily by car or bike, spend far less on fuel. This fee is more likely to affect businesses and commercial users who regularly make high-volume fuel purchases.

Bottom Line

IndusInd Bank’s new fee structure is unlikely to impact most everyday users. The ₹50,000 monthly threshold is quite high for personal fuel consumption, making the charge relevant mainly for commercial users and businesses with large fuel requirements. With many banks already following similar policies, IndusInd’s move simply brings it in line with industry standards. If you want to avoid the extra charge, you can track your statement cycle through your online banking or mobile app to ensure you stay within the ₹50,000 limit.