SBI Shocks Credit Card Users: 1% Extra Charge on Utility Bill Payments from November 1 – Here’s What You Need to Know!

SBI Credit Card new rules:State Bank of India (SBI) has announced significant changes for its credit card users, introducing new rules that will take effect from November 1, 2024. The bank has decided to levy a 1% additional charge on utility bill payments made via SBI Credit Cards. This move will impact those who use their credit cards to pay for essential services like electricity, gas, and water.

Important Update for Utility Bill Payments

If you're using your credit card to pay utility bills such as electricity, gas, or water, you should be aware of this new rule. Starting November 1, 2024, a 1% extra charge will be applied to such transactions made using SBI Credit Cards. While several other banks and card companies have already introduced similar charges after crossing a certain limit, SBI’s new rule aims to align with industry practices.

Additional Charge for Bills Over ₹50,000

SBI has clarified that this additional 1% charge will only be applicable if utility bill payments exceed ₹50,000 in a single billing cycle. Payments below ₹50,000 will not incur any extra fees.

Changes to Finance Charges

In addition to the utility bill payment charges, SBI has also revised its finance charges for unsecured credit cards, except for the Shaurya/Defense credit card. The finance charge for unsecured SBI Credit Cards will now be 3.75%, effective from November 1, 2024. Unsecured credit cards do not require any security deposit or collateral, unlike secured credit cards, which are issued against fixed deposits (FD).

These changes aim to adjust SBI’s policies to reflect current market trends, but they also place additional costs on users for certain transactions.