SBI Card has started charging Rs100 for all cheque payments of dues up to Rs2,000 while exempting all amounts above this from payment of fees - a move which it claims as disincentivising cheque payments,
SBI Card said the fee kicks in for all payments starting 1 April.
SBI Card's website states that payments made below Rs2,000 through cheques will attract a fee of Rs100.
"A fee of Rs100 will be charged for payments made by cheque for an amount less than or equal to Rs2000 with effect from 1 April 2017. No additional fee will be charged for cheque payments greater than Rs2,000," SBI Card said on its website.
For SBI Cards, which has over 4 million customers, all receipts in cheques will involve additional processing cost and a fee on cheque payments will discourage cheque payments and help boost digital payments business.
SBI Card CEO Vijay Jasuja said that over 90 per cent of its customers make payments through non-cheque mode.
"We have observed a trend of payment-related disputes arising in small cheque payments, causing inconvenience to customers as well. We offer several seamless digital modes of payment which we are seeking to encourage, in line with the government's focus towards digital payments and this step will facilitate the same," the CEO said.
Jasuja added that there will be no charge on cheque payments on holders of SBI Card Unnati, which is targeted at first-time credit card users and aimed at inclusion of people into the organised financial stream.
SBI Card's latest offering, 'Unnati' is targeted at all State Bank of India customers, including Jan Dhan account holders throughout the country.
SBI Card introduced the 'Unnati' card in an effort to bring new users into the fold of cashless transactions. The card is issued to persons with a balance of Rs25,000 in their SBI accounts.
"No such charge on cheque payments will be levied on holders of SBI Card Unnati which is targeted at first time credit card users and aimed at inclusion of people into the organised financial stream," Jasuja added.
With a customer base of over 4 million, SBI Card operates through a footprint of more than 90 locations in India.
SBI Card, a joint venture between State Bank of India and GE Capital, operates from more than 90 locations in India.
The joint venture operates through two companies.
GE Capital Business Processes Management Services (GECBPMSL) takes care of the technology and processing needs of SBI Card while SBI Cards and Payments Services (SBICPSL) focuses on customer acquisition, marketing and risk management of SBI Card.
Last month, SBI had said it would increase its stake in SBI Card to 74 per cent by June-end.