State Bank of India (SBI) is now imposing charges on payments made through cheques for credit card dues. As per SBI card website, the charges came into existence from 1st April. As per the SBI Cards website announcement, the charges up to Rs 100 will be applicable for transactions below Rs 2000.
“A fee of Rs.100 will be charged for payments made by cheque for an amount less than or equal to Rs.2000 w.e.f. 1st April ’17. No additional fee will be charged for cheque payments greater than Rs. 2000,” SBI Card said on its website.
“We have seen that the majority of payments (over 90 per cent) are made through non-cheque modes. We have observed a trend of payment related disputes arising in small cheque payments, causing inconvenience to customers as well. We offer several seamless digital modes of payment which we are seeking to encourage, in line with the government’s focus towards digital payments and this step will facilitate the same,” said SBI Card CEO Vijay Jasuja.
SBI Charges Fee for Cheque Payments against Credit Card Dues
The move is to a great extent observed disincentivizing cheque payments, where the card organization acquires extra processing cost. It is also prone to give a lift to advanced payments. SBI, the nation’s biggest bank, entered Mastercard business in 1998 by reserving GE Capital India, the customer fund arm of US-based GE Capital. SBI Card’s most recent offering “Unnati” is focused at all State Bank of India clients, including Jan Dhan account holders all through the nation. SBI Card has presented the “Unnati” card with an end goal to bring new clients into the overlap of cashless exchanges. The card is issued to people with an balance of Rs. 25,000 in their SBI accounts.
“No such charge on cheque payments will be levied on holders of SBI Card Unnati which is targeted at first-time credit card users and aimed at inclusion of people into the organized financial stream,” Mr. Jasuja added.