Axis Bank raised the interest rate on credit card outstanding dues to 3.25% per month from 2.95%. The bank said given the economic environment and the risk conditions, it decided to increase the interest rates for those customers whose cards were originated at lower rates. It added that it is moving these customers to market rates. These are a small set of customers and it has to ensure viability of business of these cards. Axis Bank’s move may offset a proposed additional levy on debit card usages on other bank ATMs. Being a large net issuer of debit cards, the bank may have to pay an extra Rs 3 per debit transaction to the acquirer bank whose ATM an Axis Bank customer uses.
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