New SBI Card rules

SBI Card Hikes Fees for Utility Payments and Finance Charges: Key Changes for Cardholders

SBI Card has announced fee hikes for select credit card transactions, affecting both utility bill payments and finance charges. These changes, effective from late 2024, were reported by the Economic Times, and they apply to a range of services. Here’s a breakdown of the key updates every SBI Cardholder needs to be aware of.

Finance Charges Revised: What’s Changing?

Starting from November 1, 2024, SBI Card will raise its finance charges from 3.50% to 3.75% per month. However, there is an important exclusion: Shaurya and Defense cardholders will not be impacted by this increase, providing some relief for those in the armed forces.

The minimum finance charge will remain ₹25 per transaction for cardholders who do not pay their outstanding balance in full by the due date. This charge also applies to any cash advances taken via credit cards. It’s important to note that applicable taxes will be added to this amount, as per SBI Card’s updated policies.

New Utility Bill Payment Fees: December 2024 Changes

SBI Cardholders should also prepare for new fees on utility bill payments, such as those for telephone, electricity, mobile services, and even charitable donations. Starting December 1, 2024, if the total amount of utility payments exceeds ₹50,000 in a billing cycle, a 1% fee will be imposed on the excess amount. This marks a significant shift for those using their credit cards for large, recurring utility expenses.

Discontinuation of Select Credit Cards

Another noteworthy change is the discontinuation of certain credit card products. As of September 28, 2024, SBI has retired both the Club Vistara SBI Credit Card and SBI Credit Card PRIME. This could impact frequent travelers and premium users who rely on these cards for exclusive benefits.

Mandatory Nominee Registration for Credit Card Insurance

In adherence to new RBI guidelines, SBI Cardholders must now register a nominee for their credit card insurance. This process, designed to simplify claims and provide better security for cardholders, can be completed via the SBI Card app or official website. Ensuring nominee registration is mandatory for all cardholders and should be addressed at the earliest.

Conclusion:

SBI Card’s recent changes in finance charges and utility payment fees are set to impact a broad spectrum of its customers. The increase in finance charges, especially for those not paying their balance in full, and the introduction of fees for utility payments over ₹50,000 signal a shift in the bank’s policies. It is essential for SBI Cardholders to review their usage patterns and adjust accordingly. In addition, mandatory nominee registration and the discontinuation of select cards highlight the evolving landscape of credit card services at SBI.

FAQs:

1.When will SBI Card’s new finance charges take effect?

A. SBI Card will implement its revised finance charges from November 1, 2024.

2.What is the new finance charge rate for SBI Card?

A. The finance charge has been increased from 3.50% per month to 3.75% per month.

3.Are all SBI Cardholders subject to the new finance charges?

A. No, Shaurya and Defense cardholders are excluded from the finance charge hike.

4.When will the new utility payment fee be applied?

A. The new 1% fee on utility payments exceeding ₹50,000 will take effect from December 1, 2024.

5.Which cards are being discontinued by SBI Card?

A. SBI has discontinued the Club Vistara SBI Credit Card and SBI Credit Card PRIME as of September 28, 2024.

6.What is the minimum finance charge for SBI Card transactions?

A. The minimum finance charge remains ₹25 per transaction, exclusive of applicable taxes.

7.How can I register a nominee for my SBI Card insurance?

A. Nominee registration can be completed via the SBI Card app or through their website, as required by RBI guidelines.

8.What services are affected by the utility payment fee?

A. Utility payments such as telephone, mobile, electricity bills, insurance premiums, charitable donations, and more are subject to the new fee.

9.Do the new finance charges apply to cash advances?

A. Yes, the new finance charge of 3.75% per month will also apply to cash advances taken using an SBI Card.

10.Why is nominee registration now mandatory for SBI Cardholders?

A. As per RBI guidelines, mandatory nominee registration is intended to provide better security and ensure smooth processing of credit card insurance claims.