New Minimum Payment Policy FAQs

Q: What is Citibank’s new Minimum Due policy?
A: In an effort to help card members pay off their debt faster, we are modifying our credit card minimum payment due requirement. This is a company-wide change which is being done world-wide in line with best customer practices. It is designed to help customers pay down their balances more quickly. This change may result in an increase in the minimum monthly payment required for in case of certain card members.

All card members are affected by this change and will receive a change in Terms & Conditions letter. The change in Terms & Conditions notice highlights the new formula for calculating the minimum due. With the new payment calculations, every month your minimum payment requirement now includes service fee, late fees (where applicable) and a percent of the outstanding balance due.

Q: Why did this change occur?
A: Credit card issuing banks work on a regular basis to adopt best customer practices and to comply with industry regulations to make sure their practices are in the best interests of customers. This change in the minimum payment due is an example of that.

Q: When will this change occur?
A: This change will be effective from April 16, 2007.

Q: How does this change impact me?
A: If you only pay your minimum due, you may be affected by this change. For some, this may increase your minimum monthly payment required. If you normally pay your balance in full each month or if you pay more than your minimum payment, the change in the minimum payment calculation will most likely not affect you.

Q:Will this change increase my minimum payment?
A: Your Citibank credit card’s minimum due now includes service fees, equal payment plan installment(s), late fee, check return fees (where applicable) and a 1.6% of the total outstanding balance due. This change may result in an increase in the minimum monthly payment required for your credit cards, but whether the minimum due increase, stays the same, or decrease depends on your specific account activity.

Q : Does the minimum payment amount mean 1.6% of balance inclusive of service fee/SIP amt/over limit/late payment etc or would it be 1.6% of the transaction amt?
A: If a customer has to pay 1.6% of the statement balance, this should not imply that we double-charge on the fees added to minimum due separately. The 1.6% on the balance is simply an amount which helps you pay off your principal debt faster.

Q:Can you give me examples of the new Minimum Due policy?
A: Example 1 :

A customer having a balance of Rs.2,000, service fee charges of Rs.60 will have minimum payment that would be the higher of:

* In this case, the customer will pay Rs.200 as the Minimum Payment Amount.

Example 2 :

A customer having a balance of Rs.12,000, service fee charges of Rs.360, and late fee charges of Rs.600 will have a minimum payment that would be the higher of:

* In this case the customer will pay Rs.1,152 as the Minimum Payment amount.