SBI Card charges fees on payments made by check. This went into effect on April 1, according to the SBI Card website. The card company has said that payments made below Rs 2,000 by check will incur a fee of Rs 100. No additional fees will be charged for payments by check above Rs. 2,000,” SBI Card said on its website website.
“We have found that the majority of payments (over 90%) are made by modes other than checks. We have observed a trend of payment disputes occurring with small check payments, which also causes inconvenience to customers. We are offering several seamless digital payment methods which we seek to encourage, in line with the government’s direction towards digital payments and this step will facilitate the same,” said SBI Card CEO Vijay Jasuja.
However, payments made by SBI check will not incur any additional charges.
The move is widely seen as discouraging check payments, where the card company incurs additional processing costs. It is also likely to give digital payments a boost. SBI, the country’s largest lender, entered the credit card business in 1998 by partnering with GE Capital India, the consumer finance arm of US firm GE Capital. SBI Card’s latest offering, “Unnati”, is aimed at all customers of State Bank of India, including Jan Dhan account holders across the country.
SBI Card introduced the “Unnati” card with the aim of bringing new users into the fold of cashless transactions. The card is issued to people with a balance of Rs 25,000 on their SBI accounts.
“No such charge on check payments will be levied on holders of the SBI Card Unnati, which targets new credit card users and aims to include people in the organized financial flow,” Jasuja added.
(Read also: At SBI, you do not need to maintain a minimum balance on these accounts)