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The State Bank of India (SBI) has announced a major update for its credit card customers, bringing in a new fee structure effective from November 1, 2025. The revised rules introduce fresh charges on certain categories of transactions, particularly education-related payments and digital wallet loading through third-party apps.

Extra 1% Fee on Education Payments via Apps

According to the new guidelines, if SBI credit cardholders make school, college, or university fee payments through third-party apps such as CRED, Cheq, or MobiKwik, they will be charged an additional 1% of the transaction amount.

However, if the same payment is made directly through the institution’s official website or at the Point of Sale (POS) machine on campus, no such charge will apply. This distinction has been introduced to streamline digital transactions and promote direct payments instead of using intermediaries.

Charges on Wallet Top-Ups Above ₹1,000

In another key update, SBI Card has introduced a 1% fee on wallet top-ups exceeding ₹1,000. This rule will apply to transactions falling under specific merchant category codes (MCCs), as determined by network partners. These codes may vary from time to time, depending on the transaction type.

Previously, SBI cardholders enjoyed free transactions on wallet loads up to ₹500, but with the revised structure, costs will now be stricter for higher-value loads. This change is expected to impact users who frequently use their credit cards to load popular digital wallets.

No Change in General Fees

While these new charges have attracted attention, other standard fees remain unchanged. Cardholders will continue to face existing charges on cash withdrawals, cheque payments, and late payments without any revision.

However, SBI has tightened one important rule: if a cardholder fails to pay the minimum amount due for two consecutive billing cycles, an extra ₹100 fee will be levied for each cycle in default.

Why Has SBI Made These Changes?

According to SBI, this updated fee structure has been introduced to improve the transparency of digital transactions and to encourage customers to make payments through official channels. By imposing fees on third-party payment apps, the bank aims to limit indirect payment routes while also strengthening its own revenue streams.

This move is also aligned with the larger trend in the Indian banking industry, where lenders are re-evaluating transaction categories that often bypass direct payment networks. For SBI cardholders, it means revisiting their spending and bill payment habits to avoid unnecessary charges.

SBI’s Advice to Customers

SBI has already issued notifications to its cardholders about the upcoming changes. The bank has advised customers to regularly review their billing details and plan their expenses in line with the new rules. Timely monitoring, SBI says, will help customers avoid unexpected fees and manage their monthly credit card bills more efficiently.

What This Means for Cardholders

For many SBI credit card users, the changes will require adjustments in payment methods. Parents and students who previously relied on apps like CRED or MobiKwik for paying education fees may now prefer direct institutional payment channels to escape the 1% surcharge. Similarly, frequent wallet loaders will need to be cautious about topping up more than ₹1,000 at a time.

In the long run, the revised structure is expected to encourage greater financial discipline among cardholders. For SBI, it helps in balancing digital convenience with cost recovery and transaction management.

✅ Key Takeaways for SBI Cardholders:

• New charges effective November 1, 2025.

• 1% fee on education payments made via third-party apps like CRED, Cheq, or MobiKwik.

• No extra charge if fees are paid directly via official school/college websites or POS.

• 1% fee on wallet top-ups above ₹1,000.

• Failure to pay the minimum amount for two consecutive cycles will invite ₹100 extra charge per cycle.

• Other charges like cash withdrawal and cheque processing remain

This update marks one of the most significant policy shifts for SBI credit cardholders in recent years. As the rules come into effect from November 1, customers are strongly advised to plan their transactions carefully to avoid paying additional fees.

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