Since the beginning of the financial year, banks have been increasing their charges for the services they offer at the branch, especially for cash deposits and withdrawals. Most banks now also charge a fee for payment of credit card bill made in cash at a branch. By thus punishing customers for credit card bill payments made through cheques, they are forcing them to pay this bill via electronic modes.
State Bank of India (SBI) has started levying a charge of Rs 100 on payments below Rs 2,000 made by cheque to settle credit card bills. Since SBI is the country’s largest bank, many credit card users are worried that other banks could also follow suit. After banks started levying charges on cash payments to settle credit card bills, there has been a drastic fall in such transactions.
On a credit card bill of below Rs 2,000, a charge of Rs 100 is significant — five per cent. The lower a cardholder’s bill, higher is the impact. For such customers, shifting online to make this payment works out to be a much better option.
Shift your focus
The usage of electronic routes to make payments involves a process of transfer of money from an individual’s account to that of another entity. This can be done online directly – from your account to that of the entity. It can also be done by visiting your bank and asking it to do an online transfer to another account.
Until now, most cardholders focussed on paying merchants using their credit cards. After the introduction of the new charges, they now also need to focus on the mode they adopt to repay their credit card outstanding. Read More