SBI Card, one of India’s leading credit card issuers, has announced changes in its fee structure effective from September 16, 2025. These revisions will directly impact customers who use their credit cards for everyday purchases, utility bill payments, and other services. The move is aimed at revising service charges in line with market practices, but for cardholders, it means they should carefully review the new terms to avoid unexpected costs.
What Are the Changes Coming from September 16?
SBI Card has updated charges related to utility bill payments, fuel transactions, and certain processing fees. While many charges remain the same, a few categories will see revisions. This update is especially important for customers who frequently use their cards for recurring payments like electricity, water, and gas bills.
Revised SBI Credit Card Charges
The new charges will apply to specific categories of transactions. Below is a simplified table outlining the major changes:
| Transaction Type | Current Charges | New Charges (from Sept 16, 2025) |
|---|---|---|
| Utility Bill Payments (Electricity, Gas, Water, etc.) | Nil (in most cases) | 1% fee (minimum ₹10, maximum ₹250) |
| Fuel Surcharge (at petrol pumps) | 1% surcharge (waived on select cards) | No major change, continues as per card terms |
| Cash Withdrawal Fee | 2.5% of amount (min ₹500) | 2.5% of amount (min ₹500) – unchanged |
| Reward Redemption Fee | ₹99 + GST | ₹149 + GST |
| Late Payment Fee (₹500–₹25,000 outstanding) | ₹400–₹1,300 | ₹400–₹1,500 depending on outstanding amount |
What This Means for Customers
The biggest change lies in utility bill payments, which were earlier mostly free but will now attract a fee. Customers who use their SBI credit card for monthly bill settlements will now see an additional cost each month. Similarly, the reward redemption fee has increased, meaning customers redeeming points for vouchers or merchandise will pay slightly more.
For fuel transactions, the existing surcharge remains unchanged, which is good news for frequent drivers. However, customers must check if their specific card variant offers surcharge waivers to continue enjoying free fuel benefits.
How to Avoid Extra Costs
SBI credit cardholders can plan their spending strategy to minimize the impact of the new charges. Using alternative payment methods like UPI, net banking, or auto-debit for utility bills can help avoid the 1% fee. Additionally, redeeming reward points in larger amounts at one go may reduce the overall impact of the increased redemption fee.
Final Verdict: Should Customers Worry?
While the changes may not drastically affect occasional users, frequent bill payers and those who actively redeem reward points will notice the difference. SBI Card remains a strong choice for credit card users due to its wide acceptance, offers, and cashback options, but from September 16, cardholders need to be more careful about how they use their cards to avoid unnecessary charges.