The State Bank of India now has introduced some new rules for its credit card users – a processing fee will be charged on all EMI transactions that will be done through the credit cards.
The bank has also announced that a processing fee will also be charged on the transactions done through the same process.
SBI Announces Processing Fee Of Rs. 99 On All EMI Transactions
The state-owned lender SBI has announced that this rule will be applicable from December 1. This move was announced last month, wherein SBI Cards and Payment Services Limited have stated that a processing fee of Rs 99 will be charged and it will also levy taxes on it.
In simple words, the customers of the bank will now have to pay a higher transaction amount whenever they buy something using the SBI Credit Card EMI scheme.
This will also be applicable on all equated monthly installment (EMI) transactions made at retail outlets and e-commerce websites such as Amazon, Flipkart, and Myntra.
The mail by SBI states, “Dear Cardholder, We would like to inform you that with effect from 01 Dec 2021, Processing Fee of Rs. 99 + applicable taxes will be levied on all Merchant EMI transactions done at Merchant outlet/website/app. We thank you for your continued patronage. Please click here to know more about Merchant EMI Processing Fee.”
These rates will be applicable over and above the interest charges to convert one’s purchases into monthly payments.
Where Is This Processing Fee Applicable?
Merchants will mostly be affected by this move who offer a discount to EMI transactions by paying the interest to the concerned banks. To the customer, it appears as a ‘zero interest’ scheme. In such cases, from December 1, if you are an SBI credit card holder, you will have to pay the processing fee of Rs 99.
This fee will be charged only on the transactions which have been successfully converted into equated monthly installments or EMI transactions.
The processing fee will also be reversed in case of failure or cancellation of EMI transactions. However, it won’t be reversed if there is a pre-closure of the EMI.
If a transaction is made before December 1, and the payment starts at a later date. The new rule will not be applicable.
This new rule by SBI will most like affect the ‘Buy Now, Pay Later’ schemes.
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