If you use an SBI credit card, then this news is for you. The bank has changed the charges of its credit card, which includes an increase in utility bill payments, finance charges, reward points, and transaction charges. These changes have come into effect from today i.e. November 1, 2024. Let us know how much the burden will increase on you due to the changes made by the bank. 

1% surcharge on utility bill payments

SBI credit card holders will now be charged a 1% surcharge on utility bill payments. However, this charge will be applicable only if the total bill in a billing cycle exceeds Rs 50,000. This charge will be applicable for essential services like electricity, gas , and water. If the bill is less than Rs 50,000 in the same billing cycle, no additional charge will be applicable. Along with the new surcharge on utility bills, SBI is also increasing its charges on unsecured credit cards. From November 1, the finance charge for all unsecured SBI credit cards will increase to 3.75% per month. 

When is the finance charge levied?

Finance charges are payable at a monthly interest rate on all transactions, including unpaid EMI installments from the date of the transaction in case the cardholder does not pay off his balance in full, and on all cash amounts withdrawn by the cardholder until they are paid off. Note that finance charges on cash withdrawals are applicable from the date of the transaction till the payment is completed. 

Example 1 – Card statement date – 15th of every month.

Transactions done between 16 Jun 19 - 15 Jul 19
1. Retail purchase of Rs 5000 - on 20 Jun 19
2. Cash withdrawal of Rs 7000 - on 10 Jul 19

Assuming no previous balance has been carried forward from the 15th June 2019 statement, the cardholder will receive the 15th July statement showing finance charges for 5 days at the applicable rate for the transaction of Rs 12,000 as well as the cash withdrawal of Rs 7,000.