ICICI Bank comes under MRTPC lens
14 May 2007
New Delhi: ICICI Bank has come under the lens of the Monopolies and Restrictive Trade Practices Commission (MRTPC). The latter is investigating the private lender on allegations that it made false promises to its credit card customers and violated RBI guidelines.
In its preliminary report, the Director General of Investigation and Registration (DGIR), the investigation arm of MRTPC, has said ICICI Bank caused loss to its credit card users and also violating related RBI guidelines.
The DGIR has already recommended action against Citibank and HSBC on the same issue. (See: Citibank, HSBC face flak from MRTPC investigators)
Sources said DGIR had found ICICI Bank had issued more than 50 types of special credit cards but did not adequately explain their features, benefits and liabilities. The special cards included Solid Gold Card, Bajaj Capital Card, Help-Age India Card, Kingfisher Card and Amway card apart from many alumnus Cards for various institutions.
In the cards, special customers were promised lifetime free cards by direct sales agents (DSAs) of the bank, but were charged annual fees.
