How to use the facility
According to the bank’s press release, here’s how to avail the facility:
- The debit card will be issued to new customers who avail LAS and will be automatically renewed upon renewal of the LAS account.
- Customers get a digital debit card within one business day of availing LAS, which can be accessed on the Bank’s mobile app iMobile.
- Using this digital card, they can start making online transactions post enabling the functionality. They also get the physical card within seven business days.
- Existing customers of LAS will also get this card shortly.
Benefits of the debit card
- Transaction limit: The card offers a maximum daily transaction limit of Rs. 3 lakh each for POS and online transactions.
- Digital card: The bank provides a digital card to customers, which is made available on iMobile app within one business day.
- Automatic renewal: The card is automatically renewed upon renewal of the LAS account.
What is loan against securities?
Pledge your securities in favour of ICICI Bank, get an overdraft facility of up to a certain value. Interest rate will be charged only on the amount withdrawn and for the time span utilised. LAS is available on dematerialised shares, mutual fund units, fixed maturity plans, ETFs, insurance policies and savings bonds.
RBI directive on issuing cards for overdraft accounts
Back in April of 2020, the Reserve Bank of India (RBI) allowed banks to issue electronic cards to holders of overdraft accounts. The facility can be extended to OD account holders in the nature of a personal loan, and cannot carry any specific end-use restrictions, RBI had said. “The card shall be issued for a period not exceeding the validity of the facility and shall also be subject to the usual rights of the banks as lenders.”
TR Ramachandran, Group Country Manager, Visa, India & South Asia, said, “RBI’s directive allowing digital credentials for Overdraft Accounts has come at an opportune time as businesses attempt to bounce back from the pandemic. This product allows Visa cardholders the convenience to use their overdraft credit limit with ICICI for everyday purchases, across ecommerce and face to face merchants, seamlessly.”
Sudipta Roy, Head – Unsecured Assets, ICICI Bank said that this new facility aims to provide greater accessibility to our customers to their sanctioned loan amount and enables them to use it in a frictionless manner to meet their varied needs. “We believe that these new guidelines will make overdrafts more digital friendly and make the overall experience of the end-customer hassle-free and quick,” Roy added.