New Delhi: Beginning on May 1, 2023, SBI Cards and Payments will change a few of the services available with the Cashback SBI Card. In a statement released on Thursday, the credit card company stated that the Cashback SBI Card will not provide cashback on items like jewellery, school and educational services, utilities, insurance services cards, presents, novelty & souvenir stores, member financial institutions, and railroads.
Also, the free domestic airport lounge perks will end. Moreover, a statement cycle’s worth of cashback on both online and offline purchases will be limited to a total of Rs 5,000.
According to its website, SBI Cards has agreements with 42 lounges spread across 21 airports throughout the nation.
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State Bank of India Cards & Payment Services updated the fees and charges for the SBI Credit Card in March. Renters paying with credit cards would now be charged Rs 199 plus taxes, up from Rs 99 plus any applicable taxes.
The processing cost for rent payments made with credit cards was increased by SBI Cards last November to Rs 99 plus GST at a rate of 18 percent.
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The Reserve Bank of India (RBI) said earlier this week that SBI Card experienced the largest new credit card additions in February, totaling over 300,000. In contrast, HDFC Bank added roughly 60,000, while ICICI Bank added nearly 80,000. As of Q3 FY23, there were more than 15 million active cards for the brand.
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According to the RBI data, SBI Card experienced a sequential growth rate of 2% during that time, compared to sequential growth rates of 0.6 percent and 0.4 percent for HDFC Bank and ICICI Bank.
Nonetheless, overall credit card usage has sharply decreased, falling by over 7 percent month over month. The SBI Card’s revolver rate has decreased in recent quarters, falling from 45 percent in Q1FY21 to 24 percent in Q3FY23.
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Moreover, the net interest margin hit an all-time low in the December 2022 quarter, falling from 19.2 percent to 11.6 percent.
A distinct legal person and non-banking financial organisation, SBI Cards and Payment Services provide both individual cardholders and business clients with access to a broad selection of credit cards.
