SBI credit card users to pay higher EMIs from December 1; here's why

State Bank of India, India’s largest bank, will charge its credit card customers a fee of Rs 99 plus taxes on all EMI purchases from December 1. The processing fee will be charged at merchant outlets, e-commerce websites and apps when making payments through SBI credit cards.

The adoption of the fees by SBI Cards -- registered as SBI Cards and Payment Services Limited -- follows industry standards as most banks have already been charging processing fees for EMI transactions for a long time now.

"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," read a mail from SBICPSL to its cardholders that was sent on November 12.

The processing fee will be above and beyond the interest and payments and will be reflected separately in the credit card statements.

SBICPSL has clarified that the fee will not apply to transactions that have been completed before December 1 but whose EMIs will start after the date since they were concluded before the rule change.

The fee will be charged to all successful EMI conversions but can be reversed if the EMI transaction has been cancelled. The extra fees will be reflected as processing fees on the payments pages of online merchants and through charge slips when shopping physically.