Rs 100 fee on SBI Card amount payment by cheque
Mumbai, April 18: For the first time, SBI Card — the payment solutions provider in India which incorporated as a joint venture between the State Bank of India — has decided to impose a charge on payments made by cheques.
SBI Cards and Payments Services, the card company recently conveyed its customers that after the communication payments of below Rs 2,000 made through the cheque drop box will attract a fee of Rs 100.
“A large number of cheques were being dropped late into the boxes and subsequently disputes were raised on late payment charges. We have done a deep analysis. It is not possible that every month the bank is making a mistake in cheque collection” says Vijay Jasuja, State Bank Of India Card MD and CEO. To avoid such disputes State Bank Of India has decided to discourage cheque payments.
SBI Card incurs a cost in collecting and depositing cheques for clearing because it is the only card issuer in the country which is not a bank and is registered as a finance company. According to Vijay Jasuja, 92 percent of SBI card holders are settling their bills through non-cheque mode.
Meanwhile, the fees do not apply to State Bank Of India account holders, who make cheque payments across the counter. In such cases, the cheques are not sent for clearing and the payment is made as an intrabank transfer.
However, cheques from other banks would incur fees even if deposited across the counter in branches.
“Of the 8 percent who are paying by cheque, around 6 percent have bills of over Rs 2,000 and it is only the remaining 2 percent who are getting affected,” Vijay Jasuja said. “While the company was discouraging cheques, we are providing incentives to those paying online by way of higher reward points” Jasuja added.