Post-CRR hike by 75 basis points, the banks are planning to hike their sub-PLR rates and other retail rates like credit card and auto loan rates.
?Since, we cannot hike our prime lending rates (PLR), since the finance minister has asked us not do so, we will increase the sub- PLR rates which are availed of by the corporates cheaper than the PLR,? said a Mumbai-based chief of a public sector bank.
The country?s largest credit card player, ICICI Bank has come up with a concept of ?tiered pricing? whereby some of the customers have witnessed a rate hike in credit card.
At the same time, the bank has claimed that it has reduced the rates.
Citibank said it raised credit card rates recently, and charges the customer about 3-3.5% on a monthly basis. The Netherlands-based ABN Amro Bank has raised its credit card rates from 3.1% to 3.2-3.5% on monthly basis, effective from June 1.
The customers of few foreign banks have received their latest credit card statements in which the banks have informed them about the rate hikes.
For ICICI Bank, some of the credit card customers will see rates going up by 2%. Accordingly, the bank now charges 1.51%-3.41% against a flat 2.99% earlier.
In April, RBI in three phases hiked the cash reserve ratio (CRR) by 75 basis points, sucking Rs 27,500 crore from the banking system.