State Bank of India (SBI) is country's largest bank and its services are very popular. But, SBI credit card holders are set to face a tough situation from tomorrow as the bank has decided to stop extending a big benefit. The bank has informed its credit card customers that the 0.75 per cent cashback on fuel transactions will be discontinued with effect from October 1, 2019. This discount was introduced by the bank on fuel purchase after demonetisation in November 2016. The step was taken to promote digital transactions in the country.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Back then, authorities had asked state-owned oil companies such as Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL), to offer this discount on card payments for fuel purchases. The government also asked OMCs (oil marketing companies) to bear the burden of card payment charges, merchant discount rate (MDR).

However, the customers won't be able to get this benefit from October 1. Notably, they will continue to get the discount on debit card and other digital modes of payment. "Dear SBI credit cardholder, as advised by public sector oil marketing companies, the 0.75 per cent cashback on fuel transactions will be discontinued with effect from October 1, 2019," the bank has informed to its customers in a text message.

WATCH Zee Business TV LIVE Streaming Online -

Meanwhile, an official was quoted as saying by PTI that oil companies have decided to discontinue discount on all credit cards from the said date. The three fuel retailers paid Rs 1,165 crore in e-payment discounts and Rs 266 crore to banks for bearing MDR, totalling Rs 1,431 crore in 2017-18. In 2018-19, the outgo almost touched Rs 2,000 crore.

Currently, petrol in Delhi is retailing at Rs 74.34 a litre. While diesel in the city is priced at Rs 67.24, as per data from Indian Oil Corporation website.