State Bank Of India Hikes Processing Fee On Credit Card Rent Payments; Deets Below
Last Updated: February 16, 2023, 14:35 IST
With effect from 17 Mar 2023, charges on Rent Payment transactions with SBI Credit Card will be revised.
Those paying their rent using an SBI credit card will have to pay Rs 199 + applicable taxes, up from Rs 99 + applicable taxes.
The State Bank of India Cards and Payment Services said that it has increased the fee for the SBI Credit Card and that the new fees will be levied on customers as of March 17, 2023. According to an SMS and email issued to SBI card users, those who were paying their rent using a credit card will now be charged Rs 199 + applicable taxes, up from Rs 99 + applicable taxes. The SMS mentioned, “With effect from 17 Mar 2023, charges on Rent Payment transactions with SBI Credit Card will be revised.”
In November 2022, SBI cards increased the processing charge for credit card rent payments to Rs 99 + GST at a rate of 18%. It should be highlighted that SBI Cards & Payment Services updated a set of guidelines for proprietors of their SimplyCLICK Cards from January 2023. The SBI Cards & Payment Services website states that two rules pertaining to the redemption of vouchers and reward points changed on January 6, 2023.
Now, let’s look at the processing charges of some other Indian Banks.
The ICICI Bank stated that starting October 20, 2022, rent payments made using credit cards would be subject to a processing fee of 1%.
Beginning with the second rental transaction of the calendar month, HDFC Bank announced it will charge a fee of 1% of the entire transaction value.
Kotak Mahindra Bank
According to Kotak Mahindra Bank, rent payments started on February 15, 2023, and will be equal to 1% of the transaction amount, plus GST. This does not apply to the White and White Reserve Credit Cards.
Bank Of Baroda
The Bank of Baroda mentioned on its website that a fee of 1% of the total transaction amount will be applied to all rent payment transactions (Merchant Category Code or MCC 6513) made using a Bank of Baroda credit card.
The State Bank Of India has hiked its lending rates by 10 basis points. The decision is taken across tenures and will make consumer loans, such as auto or home loans costlier for borrowers. The new rates came into effect on February 15, 2023. Also, their overnight MCLR (Marginal Cost of Funds-Based Lending Rate) was increased by 10 basis points to 7.95% from 7.85%, while the one-month MCLR rate was increased by 10 basis points to 8.10% from 8.00%, according to the bank. The three-month MCLR increased from 8.00% in January to 8.10% today, and the six-month MCLR is now 8.40% instead of the prior 8.30%.
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