ICICI Bank has officially announced the increase of Dynamic Currency Conversion (DCC) charges on debit card transactions from the current 1% to 3.5% of the transaction value. According to The Economic Times report, the revised charges will come into effect from June 21, 2026. The bank has confirmed this development through official statements, addressing the concerns raised by customers who had previously shared screenshots of unofficial communications regarding the proposed hike.
The higher revised charges will come into effect from June 21, 2026. As confirmed by ICICI Bank's official customer communication, the new higher DCC charges will apply to all eligible transactions completed in Indian rupees with Indian merchants registered internationally or at international locations. This means ICICI Bank debit cardholders choosing DCC for making international transactions will have to bear a higher cost beginning June 21, 2026. The revised fee structure will apply to select debit card transactions conducted in Indian rupees under certain international payment scenarios, including purchases made at overseas merchant outlets where customers choose to pay in Indian rupees instead of local foreign currency. According to recent reports, a ₹10,000 hotel booking abroad now costs ₹350 extra - equivalent to 70 cups of chai - demonstrating the significant impact of this fee increase on international transactions.
DCC is a payment functionality that helps cardholders in transacting in their home currency as against the local foreign currency when making any international transaction. According to The Economic Times report, when making any purchase at overseas retail outlets, customers get a choice to complete the payment in Indian rupees instead of other currencies like dollar etc. This is an extra charge added when customers prefer to complete the payment in their home currency, making it an optional service for international transactions. Under the revised structure, the DCC fee will rise to 3.5% of the transaction value from the current 1%. A key consideration for customers is that selecting INR triggers the expensive DCC rate, which is almost always worse than paying in the local foreign currency, as reported by financial experts. The conversion is handled by the merchant or payment network instead of the card issuer, often resulting in additional foreign transaction fees and less favourable exchange rates.
The significant increase from 1% to 3.5% marks a substantial hike in charges on eligible transactions. As confirmed by ICICI Bank's official communication, the higher levy could increase costs for customers using debit cards for overseas spending, international subscriptions or transactions routed through foreign merchant networks. The revised DCC fee will be applicable on every eligible transaction carried out in Indian currency at international locations and on transactions with India-based merchants registered in foreign countries. According to The Economic Times report, customers making frequent overseas purchases or cross-border online payments may need to review the available currency payment options while completing transactions. ICICI Bank shares were trading at ₹1,230.80 on NSE as of May 20, 2026, down 0.81% from the previous close, reflecting market reaction to the fee revision. Financial experts recommend switching to zero or low forex-markup credit cards for all international transactions, as several options now charge 0–1.5% versus 3.5%, while also comparing multi-currency travel cards from banks like Niyo, IndusInd, or IDFC First that offer lower or nil forex charges for overseas use.
