State Bank of India (SBI), the largest public sector bank in India, is set to implement significant changes to its credit card policies. These revisions are likely to impact customers who use their SBI credit cards for utility bill payments, such as electricity, gas, and water. The new rules, which include extra charges and updated finance fees, will come into effect from November 1, 2024.
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1% Surcharge on Utility Bill Payments Over ₹50,000
One of the most important changes is the introduction of a 1% surcharge on utility bill payments made using SBI credit cards. Customers paying electricity, water, gas, or similar bills through their credit cards will now need to be cautious, especially if their payments exceed ₹50,000 in a single statement cycle. For payments above this threshold, SBI will charge an additional 1% on the total bill amount. However, if the payment is below ₹50,000, no extra fee will be imposed.
This move mirrors actions taken by several other banks and credit card companies, which have already implemented similar surcharges for utility bill payments exceeding certain limits. SBI customers who regularly use their credit cards to handle high-value utility bills could notice a noticeable increase in their total costs.
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Changes to Finance Charges on Unsecured Credit Cards
In addition to the utility bill surcharge, SBI is adjusting its finance charges for unsecured credit cards. Unsecured credit cards, unlike secured ones, do not require a security deposit or collateral. Effective November 1, 2024, SBI will impose a 3.75% finance charge on all unsecured credit cards. This rate applies to all cardholders except those using the Shaurya/Defence credit card, which remains exempt from these changes.
These policy updates from SBI could substantially impact customers who frequently use their credit cards for large utility payments. With the extra surcharge and updated finance charges coming into effect from November 1, 2024, cardholders should review their spending habits to avoid unexpected fees.
