In important news for State Bank of India (SBI) customers, the lender has said it will charge a processing fee as well as tax on all EMI transactions done through its credit cards. The new rule will be applicable from December 1, 2021.
The SBI Cards & Payment Services Private Limited (SBICPSL) announced it will charge a processing fee of Rs 99 and levy taxes on it. The lender 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. These 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.
The notification was sent to the SBI credit card holders on Friday, November 12 via an e-mail that read: “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.”
This could possibly affect ‘Buy Now, Pay Later’ schemes as they may become more expensive on the buyers. These options are usually provided by e-commerce websites.