Changes to Minimum Amount Due (MAD)
One notable adjustment is the reduction of the Minimum Amount Due (MAD) calculation. MAD is computed as 5 per cent of the outstanding principal balance, which includes purchases, cash withdrawals, and balance transfers. From September 2024, this percentage will decrease to 2 per cent.
MAD is the minimum amount that a cardholder must pay each month to maintain their credit card account in good standing and avoid late fees. The new calculation will still include other components such as equated monthly instalments (EMIs), interest charges, and any fees or taxes.
The adjustment to the Minimum Amount Due will not apply to FIRST SWYP & Commercial Suite Credit Cards.
Revised payment due date
IDFC First Bank will also modify the payment due date for credit card statements. The previous time frame of 18 days from the statement generation date will be shortened to 15 days. This adjustment means that cardholders will need to be more vigilant about their payment schedules to avoid late fees.
For instance, if a statement is generated on September 1, the payment due date will shift from September 19 to September 16. Cardholders should carefully review their billing statements and plan their payments accordingly to accommodate the new terms.
You can check your payment due date on your credit card statement or in the credit cards section of the IDFC FIRST Bank mobile app.
First Published: Jul 31 2024 | 4:36 PM IST
