SBI Card revises cashback benefits on service, check details here

In a notification issued on Thursday, SBI Cards and Payments said Cashback SBI Card will not offer any cashback on services like jewelry, school and educational services, utilities, insurance services cards, member financial institution/quasi cash, and railways and others. 

The maximum cashback that can be earned on online and offline spending in a statement cycle would be capped at ₹5,000.

SBI Cards has a tie-up with 42 lounges across 21 airports in the country, according to its website.

In November, State Bank of India (SBI) has announced that it will charge a processing fee as well as tax from its credit card customers on all equated monthly instalment (EMI) purchase transactions. These charges are over and above the interest charges for converting the purchase into EMIs.

“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,” the mail from SBICPSL read on the day.

In March, SBI Cards & Payment Services revised the charges and fees of the SBI Credit Card. The customers who were paying their rent via credit card would be charged Rs199 + taxes, up from ₹99 and the applicable taxes.

Earlier this week, RBI said that SBI Card saw the highest new credit card additions around 300,000 in February. In comparison, HDFC Bank and ICICI Bank added about 60,000 and 80,000, respectively. The brand has a broad base of over 15 million cards in force as of Q3 FY23. SBI Card grew 2 per cent sequentially in the same period.

However, overall, credit card spendings have gone down drastically, almost 7 per cent month-on-month.

SBI Card and Payments Services, India’s second-largest credit card issuer, should see 23% compound annual growth rate (CAGR) in card spends over FY23-26e by leveraging State Bank of India’s (SBI) large customer base and its wide co-branded card tie-ups, as per global brokerage Jefferies.

On Thursday, the company’s scrip ended 1.66 per cent up at ₹752.00 on BSE.