SBI Credit Card Introduces New Utility Payment Fees and Reward Policy Changes

SBI Card, a subsidiary of the State Bank of India (SBI), has rolled out new policies regarding utility payments and reward point accrual. These changes, effective from late 2024, will influence how customers make payments for services like electricity, water, and gas, and also affect how reward points are earned.

New Utility Payment Fee Structure

In a recent update, SBI Card has introduced a 1% fee on utility payments exceeding ₹50,000 in a billing cycle. This fee applies to payments for various services like electricity, water, gas, and other utilities. However, payments below ₹50,000 in a billing cycle will remain unaffected and will not incur any charges. This fee structure builds on the earlier charge introduced in November 2024, which also imposed a similar surcharge on large utility payments.

These changes aim to regulate and streamline the processing of high-value utility transactions. Cardholders should be aware that, while smaller payments remain unaffected, any large-scale payments will now be subject to this additional cost, potentially influencing the way customers approach large utility payments.

Changes in Reward Point Accrual and Discontinuation of Certain Cards

SBI Card has also revised its reward point policy. Effective immediately, cardholders will no longer accumulate reward points for purchases made on digital gaming platforms or at related merchants. This shift is part of a broader trend of re-evaluating reward point accrual categories to align with the bank’s objectives and customer preferences.

Additionally, in a separate announcement from September 2024, SBI Card discontinued the issuance of new Club Vistara SBI Credit Cards and Club Vistara SBI Credit Card Prime. These changes reflect an ongoing review of card offerings, ensuring that the benefits of each card are in line with the evolving needs of customers.

SBI Cards Share Performance

As of 05, December 2024, The share of SBI Cards closed at ₹724.90 up by 1.36% from its previous day’s closing price. The stock has surged by 5.32% over the past month.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.