SBI Card has discouraged cheque payments as it incurs additional costs to process such payments.
SBI Card, which is the credit card business of the State Bank of India, is going to charge Rs 100 on all payments of credit card bills made by cheques for amounts less than or equal to Rs 2,000, according to SBI Card's website.
However, no charges will be levied for payments made over Rs 2,000. Payments made through an SBI cheque will also not attract this charge.
No such charge on cheque payments will be levied on holders of SBI Card Unnati which is targeted at first time credit card users and aimed at inclusion of people into the organised financial stream, said Vijay Jasuja, CEO, SBI Card.
The new charge came into effect on April 1.
“We have seen that the majority of payments (over 90 percent) are made through non-cheque modes. We have observed a trend of payment-related disputes arising in small cheque payments, causing inconvenience to customers as well," said Jasuja.
SBI Card has discouraged cheque payments as it incurs additional costs to process such payments."We offer several seamless digital modes of payment which we are seeking to encourage, in line with the government’s focus towards digital payments and this step will facilitate the same,” said Jasuja.