In a move that is likely to impact frequent international travellers and online shoppers, ICICI Bank has announced a sharp increase in its Dynamic Currency Conversion (DCC) fee, raising it from 1% to 3.5% (plus GST), effective June 21, 2026. The DCC fee is applicable when customers choose to pay in Indian Rupees while making transactions abroad or when transacting with merchants in India who are registered overseas. According to the updated Terms & Conditions, the revised fee will apply uniformly across such transactions, significantly increasing the cost of using debit cards internationally.
This revision represents a steep 3.5-times jump in charges, which could substantially raise expenses for users. For instance, a ₹1 lakh international transaction that earlier attracted a ₹1,000 DCC fee will now incur ₹3,500 plus GST, resulting in a noticeable increase in overall spending. The impact becomes even more significant when combined with other applicable charges. The bank already levies around 3.5% as currency conversion charges on international merchant payments, while ATM withdrawals abroad attract a fee of ₹125 along with a 3.5% conversion charge and applicable taxes.
In addition to transaction-related costs, ICICI Bank has also revised its debit card fee structure. Joining and annual fees for several card variants, including popular options such as Coral, Rubyx and Sapphiro, have been increased, with some premium cards now carrying charges of up to ₹2,499 plus GST annually. These changes indicate a broader revision in the bank’s pricing strategy for debit card services.
The updated terms also reiterate that the bank retains the right to revise fees and charges from time to time, provided customers are given prior notice and the changes are implemented prospectively. This aligns with standard banking practices but highlights the importance for customers to stay informed about evolving charges.
Overall, the revision is expected to make international transactions through debit cards significantly more expensive. Customers may now need to be more cautious while choosing payment options abroad, as selecting to pay in Indian Rupees through DCC could result in higher costs compared to paying in the local currency.