State Bank of India, one of India’s leading banks has begun charging a fee of ₹100 for payments on credit cards made through cheques. SBI Card, which is an arm of the bank will now charge a fee of ₹100 for all cheque payments made for dues below ₹2,000. Customers will now have to shell out a fee of ₹100 for any kind of credit card payments made through a cheque, in case the amount is less or equal to ₹2,000. The fee is being charged in effect from April 1, 2017. As a matter of fact, any kind of payment made through a SBI cheque will not be met with a charge. SBI card cheque payments made above ₹2,000 won’t attract any kind of penalty.
The move is basically aimed at discouraging the customers from making cheque payments. The company has to bear extra processing cost and hence has decided to charge a fee. This is bound to strengthen the digital payments initiative taken by Government of India. State Bank of India entered the market of credit cards in the year 1998 when it roped GE Capital India.
SBI has recently introduced Unnati Card for a first-time credit card user so that he/she too can come in the domain of cashless transactions. A person needs to have a minimum balance of ₹25,000 in his/her SBI account in order to avail this card. SBI card cheque payments made for the same won’t be levied with any kind of charge.