Minimum Amount Due Calculation to Change
From 15th July, SBI will change the formula for calculating the Minimum Amount Due on your credit card statement.
- Earlier, customers paid a fixed amount to prevent late charges.
- From 15th July, SBI will add:
- 2% of outstanding balance
- GST
- EMI charges
- Fees and expenses
That will mean the minimum payment itself will be greater. If you pay only the new minimum, your outstanding dues will accumulate quicker. That will mean more interest on the outstanding amount.
New Payment Adjustment Rules
SBI is also modifying how it makes payments adjustments:
- Your payments will first get adjusted in the following order:
- GST
- EMIs
- Fees and charges
- Finance charges
- Amounts of balance transfer
- Retail purchases and cash withdrawals
If you do not settle previous dues such as interest or charges beforehand, SBI will debit them from any partial payment. This will charge you extra interest even if you have paid a portion of your bill.
Accident Insurance Will Be Withdrawn
From August 11, SBI will take back free air accident insurance from various credit cards.
At present, the insurance covers between ₹50 lakh and ₹1 crore.
Following the change, the benefit will be discontinued on the following cards:
- UCO Bank SBI Card Elite
- Central Bank of India SBI Card Elite
- PSB SBI Card Elite
- KVB SBI Card Elite
- KVB SBI Signature Card
- Allahabad Bank SBI Card Elite
- UCO Bank SBI Card Prime
- Central Bank of India SBI Card Prime
- PSB SBI Card Prime
- South Indian Bank SBI Card Prime
- Karnataka Bank SBI Card Prime
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