- The card company has already informed its customers that henceforth they will have to pay a fee.
- SBI account holders making cheque payments through the counter are exempted from this fee.
The SBI Card wing of State Bank of India will be levying a charge on cheque payments. This card company has already informed its customers that henceforth they will have to pay a fee of ₹100 for payments worth below ₹200 made via cheque drop box.
SBI Card is not a bank yet, the only card issuer in India. It is registered as a financial company; SBI Card incurs cost through collecting as well as depositing cheques for clearance.
SBI Card CEO and MD, Vijay Jasuja, stated that many customers dropped their cheques late on the boxes that resulted in late payment charges related disputes. The company did their analysis and found that bank cannot possibly make a mistake in cheque collection every month; the Times of India quoted him as saying. For avoiding these disputes, the bank is imposing a fee to discourage people from making payment through cheque.
However, SBI account holders making cheque payments through the counter are exempted from this fee. Cheques deposited on the counter do not require to be cleared, and also, these are intrabank transfer. But, since non-SBI cheques are not intrabank transfer they would incur the fee.
Jasuja also stated that the company would give higher reward points for making online payments to encourage people to adopt digital transactions.
Last Updated 31, Mar 2018, 6:51 PM IST