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I've an Apple ID already, which I got after registering at developer.apple.com. Now when I sign-in using iTunes, it says the id has not been used with iTunes and needed to review. When I click on review button, it asks some information and my credit card details. Since I am not purchasing anything, I put a card info which I rarely use. On Clicking submit, it doesn't accept the card info.
Why apple need Card info just to sign-in to iTunes, and will it deduct any money for signing in??

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When you registered at developer.apple.com, had you Provided credit card information? If you had, the card information which iTunes needed must same as it. Don't worry,if you don't purchase anything, it will not incur any costs.
Actually, you can register an Apple ID without credit card. Go to the App Store, pick a free app to download. And click Creat Apple ID. Now you can Select NONE when it asks you credit card details.

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