State Bank of India (SBI) credit card users are in for an unwelcome surprise, as the bank is set to introduce new charges and changes to its credit card policies.
The updated rules, which will take effect soon, could lead to higher costs for customers who frequently use their credit cards to pay utility bills or make other transactions.
Extra Charges for Paying Utility Bills from December 1
Credit card usage has grown significantly, with many people using them to pay utility bills such as electricity, water, and gas.
However, starting December 1, 2024, SBI will impose additional charges for paying these bills with an SBI credit card.
This change is expected to make it more expensive for users to continue their current payment habits.
Increased Finance Charges on Unsecured Credit Cards
In addition to the utility bill charges, SBI is also increasing finance charges on all unsecured credit cards, except for Shaurya/Defense Credit Cards.
From November 1, 2024, unsecured SBI credit cards will incur a finance charge of 3.75%.
Unsecured credit cards are those that do not require a security deposit, unlike secured cards that are backed by collateral, such as fixed deposits (FD).
These changes mean SBI credit card users could face higher costs, especially those who rely on their cards for regular bill payments.
However, users can avoid some of these charges by staying within the Rs 50,000 limit for utility payments.
