Mumbai: In a first, SBI Card an arm of State Bank of India has decided to impose a charge on payments made by cheque.
The card company recently communicated to customers that henceforth payments of below Rs 2,000 made through the cheque drop box will attract a fee of Rs 100, sources said.
According to SBI Card MD and CEO Vijay Jasuja said, “A large number of cheques were being dropped late into the boxes and subsequently disputes were raised on late payment charges. We have done a deep analysis. It is not possible that every month the bank is making a mistake in cheque collection”.
To avoid such disputes the bank has decided to discourage cheque payments.
The fees do not apply to SBI account holders, who make cheque payments across the counter. In such cases the cheques are not sent for clearing and the payment is made as an intrabank transfer. However, non-SBI cheques would incur fees even if deposited across the counter in branches.
SBI Cards claims to have 14 modes of bill payments but most of them involve access to internet over mobile or desktop. Without a mobile phone or internet connection the only paperless way of payment is through standing instructions.