A card statement can look like a list of small, unrelated charges. Each one has its own trigger, though, and if you know what sets it off, you can usually avoid it. Here is what each line means. We don’t quote specific amounts, because they differ by issuer and change often.
The full list at a glance
| Charge | What triggers it | How to reduce it |
|---|---|---|
| Joining fee | Taking the card | Compare with what you get in return |
| Annual fee | Each card year | Check the waiver spending level, or ask for a waiver |
| Finance charges (interest) | Not paying the full amount due | Pay in full |
| Late-payment charge | Not paying at least the minimum due in time | Auto-debit and due-date reminders |
| Cash withdrawal fee | ATM or cash-like withdrawals | Avoid using a card for cash |
| Foreign-currency markup | Non-rupee transactions | Compare before spending abroad |
| Over-limit charge | Going over your limit, where you have agreed to this | Keep a buffer, or say no to over-limit use |
| EMI processing fee | Converting a purchase or bill to EMIs | Read the terms, even for no-cost EMI offers |
| Reward redemption fee | Redeeming points on some cards | Check before you redeem |
| Duplicate statement or new card | Asking for a physical duplicate or a reissued card | Use digital statements |
Interest: the charge that costs the most
Card interest is commonly around 3–3.75% a month, which works out to over 40% a year once compounded. It isn’t a fixed fee. It grows with your balance and with the time you take to repay it.
If you don’t pay the full bill, you may also lose the interest-free period on your purchases and on any new spending. We explain this in our article on the interest-free period. Paying “most” of a bill doesn’t mean you pay “most” of the way to no interest.
Your statement should tell you how interest is calculated. RBI’s rules say unpaid charges, levies and taxes must not be capitalised to charge or compound interest on them. Interest must also be charged only on the outstanding amount, adjusted for payments, refunds and reversed transactions.
Late-payment charges: what the rules say
As of November 2026, RBI’s rules say:
- The days past due and the late charge are counted from the payment due date on your statement.
- An issuer may levy penal charges, or report you as past due to a credit bureau, only if the account stays past due for more than three days.
- The charge applies only to the outstanding amount after the due date, not to the total amount due.
Suppose your bill is ₹20,000 and you pay ₹15,000 by the due date. Any late charge should be based on the ₹5,000 left outstanding, and only if at least the minimum due wasn’t met under your issuer’s terms. Late charges usually come in slabs that rise with the amount outstanding, so check your own table.
The three-day rule gives you a small margin. It isn’t a free extension, because interest can keep running on what you owe.
Cash withdrawals: a cost on top of a cost
A card isn’t a cheap source of cash. You usually pay a fee, and interest generally starts on the day you withdraw, with no interest-free period.
Suppose you withdraw ₹10,000, with a fee of 2.5% and interest of 3.5% a month, and repay after 30 days. The figures below are illustrations, and your own card’s rates may differ.
- Fee: â‚ą250
- GST on the fee at 18%: â‚ą45
- Interest for 30 days: â‚ą350
- Total cost: â‚ą645, before any GST that may apply to the interest
Foreign-currency markup
When you pay in another currency, or on some overseas websites, issuers commonly add a percentage markup to the exchange rate. Suppose a card has a 3.5% markup and you spend â‚ą50,000 abroad. The markup is â‚ą1,750, and 18% GST on that adds â‚ą315, making â‚ą2,065 in total. This is only an example, and rates vary widely by card.
Also check for “dynamic currency conversion” when a terminal abroad offers to charge you in rupees. The rate may be worse than letting your card do the conversion.
Fees that may surprise you
- Rent, wallet or utility payment fees. Some issuers charge these or exclude them from rewards.
- Over-limit charges. RBI’s rules say your sanctioned limit shouldn’t be breached without your explicit consent. Check your settings and say no if you don’t want this.
- EMI foreclosure charges. Closing an EMI plan early can carry a fee.
- Add-on card fees. Remember, too, that the primary cardholder is liable for what an add-on card spends.
What to do about a charge you don’t accept
- Check your MITC and Key Fact Statement to see whether the fee is listed.
- Raise it with the issuer through its official app, email or helpline, and note the complaint number.
- Note the date. RBI’s rules set a maximum of 30 days from your complaint to resolve billing issues.
- If there is no reply within 30 days, or you aren’t satisfied, you can go to the RBI Ombudsman at cms.rbi.org.in within 90 days. The scheme is free to use, as of November 2026.
If a card or upgrade was issued without your consent and you were billed for it, RBI’s rules require the issuer to reverse the charges and pay a penalty of twice the amount reversed.
Paying these fees late or leaving them unpaid can feed into your credit record, so resolve them rather than ignoring them. It is also worth keeping your card usage low while a dispute is open.
Bottom line
Read your statement line by line once a month, and pay in full and on time. That simple habit can prevent most of these charges. Amounts and rules change, so check your issuer’s current MITC before you rely on any figure.
Frequently asked questions
Is GST charged on credit card fees?
Yes. GST of 18% is generally added to credit card fees such as annual, late-payment and cash withdrawal fees. Your statement usually shows it as a separate line. Check your MITC for how your issuer applies it to other charges, including interest.
Can a bank charge a late fee on my whole bill?
No. As of November 2026, RBI rules say late-payment charges can be levied only on the amount still outstanding after the due date, and not on the total amount due. The charge also applies only once the account has been past due for more than three days.
How long does a bank have to resolve a disputed charge?
RBI's card rules set a maximum of 30 days from the date of complaint to resolve a billing complaint. If you get no reply or an unsatisfactory one, you can use the RBI complaint route. Check the current rules for your situation.
Can a card issuer charge me a fee that wasn't disclosed?
RBI's rules say issuers should not levy a charge that was not explicitly indicated to the cardholder. If a charge is missing from your MITC or Key Fact Statement, ask the issuer to explain or reverse it.
