Using your SBI credit card will get costlier from November
What's the story
SBI Card, the credit card arm of State Bank of India (SBI), has announced changes to its card charge structure. The changes, which were revealed on the company's website, will come into effect from November 2024. They involve a surcharge on utility bill payments, and an increase in finance charges for certain types of cards.
Surcharge details
SBI to impose surcharge on utility bill payments
Starting November 1, 2024, SBI Card will charge a 1% surcharge on paying utility bills over ₹50,000 in a single statement cycle. The charge will apply for payments made toward gas, electricity, water, and other utility services through SBI credit cards. However, if the total utility bill payments stand below ₹50,000 in the same billing cycle, the cardholder will not incur any additional charges.
Rate hike
Finance charges for unsecured credit cards to increase
Apart from surcharge on utility bills, SBI Card has also increased its finance charges for its unsecured credit cards. Effective November 1, the finance charge will rise to 3.75% per month on all unsecured credit cards, barring the Shaurya/Defense card. Unsecured credit cards do not need collateral or a security deposit, which makes this change a big deal for many users.
Upcoming changes
Further changes to terms in December
The revisions are part of a wider update to the credit card terms that will extend into December. Starting December 1, if total amount of utility bill payments made in a billing cycle crosses ₹50,000, a 1% fee on the total amount will be levied.