Credit Card Innovation – ‘Pay by Transaction’ Billing Mode

by Gopal Gidwani on March 29, 2010 · 8 comments

in Others,Uncategorized

Hi Friends

On 23rd March 2010, Dhanalakshmi Bank has launched a credit card in which the credit period for every transaction is 45 days. Yes you read it right the credit period for EVERY TRANSACTION is 45 days interest free credit irrespective of the date on which the transaction is done.

This is different from the monhtly billing cycle normal banks follow in which the credit period ranges from a minimum of 20 days to a maximum of 50 days depending on the date on which the transaction is done and the monhtly billing cycle date.

This is for the first time in India a bank is introducing a ‘Pay by Transaction’ billing mode for credit cards.

There are 2 variants of the credit card – Gold Credit Card and Platimum Credit Card. For more details read the press release by the bank below.


Dhanlaxmi Bank launches credit cards

Thrissur-based Dhanlaxmi Bank on Monday entered the retail assets business with the launch of Dhanlaxmi Bank Platinum and Gold Credit cards. The cards are targeted at its premium customers, a bank release said.
Also, the bank for the first time in India is introducing a ‘Pay by Transaction’ billing mode for credit cards. Under this, instead of a monthly billing cycle, the interest-free credit period is considered for individual transactions from the day of purchase. A customer thus enjoys a 45-day interest-free credit period on each purchase and does not need to time the purchase based on the billing cycle.
Speaking at the launch, Amitabh Chaturvedi, MD and CEO, said retail asset would be an important element of the overall growth strategy and the bank intended to launch a number of innovative, customer-centric products in the coming financial year.
The bank will also provide several other benefits like 5 per cent cash back on grocery purchases, priority pass – valid for over 500 lounges and a worldwide concierge services for all its credit card customers, the release added.

Please Note: Before taking a decision of whether or not to go for the card please visit the bank website and read the terms and conditions carefully.

You can leave a comment below on the article or you can share your views with us at

{ 8 comments… read them below or add one }

jitesh August 16, 2010 at 9:05 pm

informative article. keep it up


sanojsonkar September 16, 2010 at 9:48 am

The information is very useful people who frequently using the credit card. This is the dynamic thinking by the dhanklaxmi to increase the customer base. Kindly also let us know the eligibility to take this credit card



Gopal Gidwani September 16, 2010 at 9:59 am

Hello Mr. Sonkar,

The card comes in 2 variants.
Gold Credit Card – The eligibility is
For Salaried: Minimum annual gross income of Rs 3 lacs
For Self Employed: Minimum annual gross income of Rs 4 lacs

Platinum Credit Card – The eligibility is
For Salaried & Self-Employed: Minimum annual gross income of Rs 6 lacs

For more details about eligibility and other features of the card you can refer the following website link


Nilesh September 17, 2010 at 10:52 am

The charges schedule is exorbitant and totally illogical. It has funny charges like reward redemption fee, application processing fee on top of joining fee, annual fee.

Nobody charges these kind of fees in India on credit cards now days.

The pay by transaction leeway is not at all justified for a retail customer with such hefty fee structure.


Gopal Gidwani September 18, 2010 at 8:15 am

Hello Mr. Nilesh,
Yes you are right they have a joining fee of Rs 499 – Rs 999 and an annual fee of Rs 1999 to Rs 3999. The application fee is Rs 250 – Rs 500. These fees are high considering that most of the banks are offering credit cards without any joining fees and these are lifetime free cards. But the facility of pay by transaction is unique and is not being offered by other banks presently. Hopefully other banks should also start offering this facility. Competition will automatically bring down the charges.


nirmal jain March 15, 2012 at 4:18 am

sir; in 2004 ibecame aclient of icici bank from delhi branchby some agent. they didnot told me of penalty of keeping zero balance in a]c. later bank deducted rs 5000]- from my balance. i complained to h.o. and theyassured me to reverse back d amount. but they did not reverse. so imade shopping for that amount from my credid card and stoped any transaction from icici bank a/c and credit card.since then bank has not closed my a/c andby adding fees nd interest the amount has gone very high fom 2004 to me as to what should i do. i d’not want to pay any extra money.


Gopal Gidwani March 15, 2012 at 5:48 am

Hello Nirmal,
Whatever has happened in your case is very unfortunate. You will have to talk to bank officials and ask them to waive off the charges. The bank would have classified you as a defaulter from 2004 to 2012. This must have spoiled your credit history with CIBIL. A bad credit score with CIBIL will make you ineligible for any loans from any banks. So speak to bank officials and try to work out a solution and get it resolved as soon as possible


Amit Sharma November 2, 2016 at 11:18 am

Great article. I also want to get a credit card but cibil score scares me. This is because I have heard that non payment in credit cards due to any reason also lowers down your cibil score. Is that true?


Leave a Comment

Previous post:

Next post: