SBI Cashback Credit Card Fees/Charges – Late Payment Charges, GST, Annual Fee and Renewal Charges

State Bank of India (SBI) is one of the most trusted and renowned banks in India. It offers a wide range of credit cards that cater to different needs of customers. SBI Cashback Credit Card is one of the popular credit cards that provides cashback on various transactions. However, like any other credit card, there are certain charges associated with the SBI Cashback Credit Card that you should be aware of. In this article, we will discuss the various charges associated with the SBI Cashback Credit Card.

SBI Cashback Credit Card Fees

      • Joining Fee (one time): Rs. 999
      • Renewal Fee (per annum): Rs. 999 from the second year onwards. Renewal Fee reversed if annual spends for last year >= Rs. 2,00,000.
      • Add-on Fee (per annum): NIL

  • Order of payment settlement

      • All payments made for a cardholder account will be settled in the order of Minimum Amount Due (which is inclusive of all applicable taxes + EMI on EMI-based products + 5% of Total Outstanding), Fees & Other Charges, Interest charges, Balance Transfer Outstanding, Purchase Outstanding, and Cash Advance.

  • Things to know

        • Submit account payee cheques following CTS 2010 standards for timely processing of your cheque payment
        • All taxes would be charged as applicable on all the above Fees, Interest & Charges
        • Your continued use of the card will be deemed acceptance of these amendments.

    Your continued use of the card will be deemed acceptance of amendments in all Terms and Conditions

SBI Cashback Credit Card Annual Fee and Renewal Charges

The SBI Cashback Credit Card comes with an annual fee of Rs. 499, which is levied on the cardholder’s account at the time of card issuance. This fee is non-refundable and will be charged every year. Additionally, there are renewal charges of Rs. 499 that will be charged from the second year onwards.

Finance Charges

The finance charges on the SBI Cashback Credit Card are levied on the outstanding balance on the card. The finance charges are calculated at the rate of 3.35% per month, which translates to 40.2% per annum. These charges are applicable only when the cardholder carries forward the balance from the previous month.

Cash Advance Charges

A cash advance is a facility provided by the bank, wherein the cardholder can withdraw cash from ATMs or bank branches using their credit card. However, this facility comes with a cost. The cash advance fee on the SBI Cashback Credit Card is 2.5% of the amount withdrawn, subject to a minimum of Rs. 500. Additionally, finance charges of 3.35% per month will be applicable from the date of withdrawal until the amount is repaid.

See also: Sbi Cashback Credit Card Online Application (Online Apply)

SBI Cashback Credit Card Late Payment Charges

If the cardholder fails to make the minimum payment on the due date, late payment charges will be levied. The late payment charges on the SBI Cashback Credit Card are as follows:

  • For outstanding balances up to Rs. 200, a charge of Rs. 100 will be levied
  • For an outstanding balance between Rs. 201 and Rs. 500, a charge of Rs. 400 will be levied
  • For an outstanding balance between Rs. 501 and Rs. 1,000, a charge of Rs. 600 will be levied
  • For outstanding balance between Rs. 1,001 and Rs. 10,000, a charge of Rs. 800 will be levied
  • For an outstanding balance above Rs. 10,000, a charge of Rs. 950 will be levied

GST

Goods and Services Tax (GST) is levied on all financial transactions in India. The GST on the SBI Cashback Credit Card is currently 18%. This GST is applicable on all charges, including the annual fee, renewal fee, finance charges, cash advance fee, and late payment charges.

The Verdict on Recent Changes

The changes made on the Cashback SBI Card are mentioned in the table below:

Particular Older Variant New Variant
Joining Fee Nil Rs. 999
Cashback Benefits
  • 5% cashback on online shopping
  • 1% cash back on offline transactions, including utility bill payment
  • 5% cashback on online shopping
  • 1% cashback only on offline transactions
Excluded Categories for Cashback Fuel Transactions, Merchant EMI Transactions, Rent Payments, Wallet Loading, Cash Advances, Balance Transfers, Flexipay or Encash Facility Older Categories + Jewellery Purchases, Educational Transactions, Institutional Transactions, Utilities, Insurance Payments, Gifting, Railway Transactions
Monthly Capping on Cashback Rs. 10,000 on accelerated category Rs. 5,000, including all categories
Domestic Lounge Access 4 complimentary lounge access every year No complimentary lounge visits are offered

 

From the above table, it is clear that SBI Card has devalued the overall benefits offered by Cashback SBI Card. However, this can still be my number one choice if I want to save on online transactions. This is major because of the below reasons:

  • I can still earn 5% cashback on all online transactions irrespective of the brand as it comes with no merchant restriction, which is usually applicable on most cashback credit cards like Axis ACE or Flipkart Axis
  • The exclusion of utility bill payments under 1% cashback is not a huge drawback as some of the premium cards like IndusInd Legend and HDFC Diners Club Black do not offer any benefits on utility bill payments
  • Looking at the overall value back, considering that now I can only earn a monthly cashback of up to Rs. 5,000, this credit card still offers better value back as compared to other similar cards like Axis ACE or HSBC Cashback

But, if I want to earn benefits across multiple categories at a low annual fee, then this card might not be the right choice for me because:

  • Not offering any domestic lounge access might be a drawback for this card as even cards with a lower annual fee like Axis ACE or Flipkart Axis offer domestic lounge access every year. Also, considering the annual fee of Rs. 999, I would expect at least a few lounge visits as an additional advantage.
  • Earlier, this credit card was offered without a joining fee, but now I have to pay a joining fee of Rs. 999 to avail of this credit card. One of the drawbacks is that Cashback SBI Card does not offer any welcome benefits even after charging a joining fee of Rs. 999, whereas, cards like Axis ACE or Flipkart Axis compensate the joining fee by providing benefits like joining fee reversal, complimentary vouchers, etc.

Annual Fee and Waiver Condition

The Cashback SBI Card charges an annual fee of Rs. 999 which is higher than other popular cashback cards. However, from the second year onwards, you can get the annual fee reversed by spending Rs. 2 Lakh or more in the preceding year.

To help you get a perspective, here is a table showing the annual fee charged by other cashback credit cards.

Credit Card Annual Fee
Axis Ace Rs. 499
Flipkart Axis Bank Credit Card Rs. 500
HSBC Cashback Credit Card Rs. 750
YES Prosperity Cashback Plus Credit Card Rs. 1,499
HDFC Millennia Credit Card Rs. 1,000

Should you get this card?

Cashback SBI Card is best suited for those who prefer online shopping for everything- whether it is apparel, footwear, accessories, travel, food, groceries, entertainment, or any other need. The maximum cashback limit (for the accelerated earning category) is Rs. 5,000 in a billing cycle, which means online transactions up to Rs. 1 Lakh per month will be eligible for the extra earnings. After you reach this monthly limit, 1% cashback will be given on all transactions.

If you are still confused, ask yourself the following questions and if the answer to most of these questions is YES for you, you can consider getting this card:

  1. Do you mostly shop online?
  2. Do you put most of your expenses on credit cards?
  3. Can you spend Rs. 2 Lakh in a year to get the annual fee waived?
  4. Are you willing to pay Rs? 999 as the annual fee if you cannot reach the spend threshold for a waiver?
  5. Do you already have or are planning to get another card for utility bill payments and fuel expenses?

Value-back Comparison: Cashback SBI Card Vs. Axis Ace

The table below shows a comparison of value-back that Axis Ace would offer for a given set of transactions compared with that offered by Cashback SBI Card on the same set of transactions.

Transaction Amount Cashback SBI Card Axis Ace
Spends on Big Basket Rs. 7,000 Rs. 350 Rs. 140
Electricity Bill Payment via Google Pay Rs. 4,000 Rs. 0 Rs. 200
Apparel Purchase on Myntra Rs. 3,500 Rs. 175 Rs. 70
Fuel Spends Rs. 5,000 Rs. 0 Rs. 0
Food Ordering via Zomato Rs. 2,000 Rs. 100 Rs. 80
Spends at Ola Cabs Rs. 3,000 Rs. 150 Rs. 120
Spends on FirstCry Rs. 4,000 Rs. 200 Rs. 80
Spends at Uber Rs. 2,000 Rs. 100 Rs. 40
Flight booking via MakeMyTrip Rs. 8,000 Rs. 400 Rs. 160
Hotel Booking via Cleartrip Rs. 6,500 Rs. 325 Rs. 130
Misc. Offline Spends Rs. 5,000 Rs. 50 Rs. 100
Total Rs. 50,000 Rs. 1,850 Rs. 1,120

Axis Ace is one of the best cashback cards in the market but the extra earnings are restricted to certain merchants. Even if you spend online, there is no extra benefit for general online spending. On the other hand, Cashback SBI Card offers 5% cashback on all online transactions except for some excluded categories. The total cashback earned would be higher for Cashback SBI Card as even the brands/merchants that are not covered by Axis Ace will earn 5% cashback.

SBI Cashback Credit Card Charges Frequent Ask Question

Qus. What is the annual fee for the SBI Cashback Credit Card?

Ans. The annual fee for the SBI Cashback Credit Card is Rs. 499, which is levied at the time of card issuance.

Qus. Are there any renewal charges for the SBI Cashback Credit Card?

Ans. Yes, there are renewal charges of Rs. 499 that will be charged from the second year onwards.

Qus. What are finance charges, and when are they levied?

Ans. Finance charges are levied on the outstanding balance on the SBI Cashback Credit Card. These charges are applicable only when the cardholder carries forward the balance from the previous month.

Qus. What is the finance charge rate on the SBI Cashback Credit Card?

Ans. The finance charge rate on the SBI Cashback Credit Card is 3.35% per month, which translates to 40.2% per annum.

Qus. What is a cash advance fee, and when is it levied?

Ans. The cash advance fee is the fee charged by the bank when the cardholder withdraws cash using their credit card. The cash advance fee on the SBI Cashback Credit Card is 2.5% of the amount withdrawn, subject to a minimum of Rs. 500.

Qus. Are there any finance charges on cash advance transactions?

Ans. Yes, finance charges of 3.35% per month will be applicable from the date of withdrawal until the amount is repaid.

QUS: Can I withdraw cash from an ATM using Cashback SBI Card?

Yes, you can withdraw cash using this card. However, cash withdrawal from credit cards is not advised as it does not qualify for the interest-free period, which means hefty finance charges will be applicable on such transactions. You will also have to pay an additional cash advance fee every time you withdraw cash. Moreover, no cashback will be offered on cash withdrawals.

Ans: What is SBI Credit Card Customer Care Number?

You can reach the SBI Card helpline at 1860 180 1290 or 39 02 02 02 (prefix local STD code).

Conclusion

Before applying for the SBI Cashback Credit Card, it is essential to understand the various charges associated with it. The charges discussed above are subject to change, and the bank may revise them from time to time. Therefore, it is advisable to check with the bank for the latest charges before applying for the card. Additionally, it is essential to use credit cards wisely and make timely payments to avoid unnecessary charges.,

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