Bad News For SBI Credit Card Holders: Bank Announces To Hike Charges On THESE Transactions

The State Bank of India has more than 19 million or 1.9 crore credit card users. The SBI is today the second-largest credit card issuer in the country. Thus, any change in rates is going to affect lakhs of users.

The State Bank of India recently sent emails to consumers informing them about the changes in fee rates. "We thank you for your continued patronage. At SBI Card, we are truly committed to building relationships based on trust and transparency. With this endeavour, we are sending this communication to inform you about important updates regarding your credit card," said the Bank.

The SBI cards on its website also shared the update about the increase in Finance Charges. "With effect from 1 November 2024, the rate of Finance Charges will be revised to 3.75% p.m. on all unsecured SBI Credit Cards (except Shaurya / Defense)," reads the SBI Cards website.

The State Bank of India has also decided to increase the charges it levies on utility bill payments using the SBI Cards. "With effect from 1 December 2024, if the sum of all Utility Payments made in a billing cycle exceeds Rs 50,000, a one per cent fee on the total amount of Utility payments will be applicable," said the SBI.

Unsecured credit cards are credit cards that are not backed by collateral or a fixed deposit (FD). Thus, if your card is issued to you on behalf of your credit score without any backup investment instrument like FD or any other collateral, it's an unsecured credit card.

The SBI has recently discontinued even co-branded Vistara cards. "W.e.f. 28 Sep ’24, the issuance of new Club Vistara SBI Credit Card and Club Vistara SBI Credit Card PRIME have been discontinued," said the bank.