The State Bank of India (SBI) has issued a directive saying it will charge a processing fee and tax on all EMI transactions done through its credit cards. Giving further details, the SBI Cards & Payment Services Private Limited (SBICPSL) said it will charge a processing fee of Rs 99 along with taxes.
The bank customers must note that the new guidelines will be applicable from December 1, 2021 and the SBI has said that it will charge this processing fee on all equated monthly instalment (EMI) transactions made at retail outlets as well as e-commerce websites such as Amazon, Flipkart and Myntra.
The SBI in this regard has sent a notification to the SBI credit card holders on Friday, November 12 via an e-mail. “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 reads.
As per the updates, the rates will apply over and above the interest charges to convert one’s purchases into monthly payments, a service used by lakhs of citizens at present.
However, the credit card users must note that the processing fee of Rs 99 will be charged on only those transactions which have been successfully converted into equated monthly installments or EMI transactions.
The SBI said that the processing fee will be reversed if the EMI transaction fails or is cancelled. But this will not be reversed in case there is a pre-closure of the EMI.