New Delhi, Feb. 3 -- Mumbai-based Yateen Kahate applied for Axis Bank's Magnus credit card in July 2023. Two months later, the bank revised the terms and conditions, raising the fee waiver threshold from Rs.15 lakh to Rs.25 lakh. Kahate was exempt from the revision for one year as the changes applied to cards issued after September 2023.

However, his credit card statement in August 2024 shocked him. He was charged the annual fee despite spending Rs.16 lakh- Rs.1 lakh more than the fee waiver threshold-in the year since his card was issued.

To be sure, all banks levy the annual fee on the first statement after 12 months from the date the card is issued. The customer has to settle the credit card statement, and the bank reverses the fee i...