**

SBI Card Minimum Due Amount Change: What You Need to Know About the July 15th Update

The Reserve Bank of India (RBI) has mandated significant changes to the calculation of minimum due amounts for credit cards across all banks, including SBI Card. This new rule, effective July 15th, 2024, impacts how much you need to pay each month to avoid late payment fees and potential damage to your credit score. Understanding these changes is crucial for responsible credit card management and avoiding financial pitfalls. This article breaks down the new SBI card minimum due amount rule, its implications, and what you need to do to prepare.

Understanding the Old vs. New SBI Card Minimum Due Calculation

Before July 15th, the minimum amount due on your SBI Card was typically a small percentage of your outstanding balance, often between 5% and 10%. This relatively low amount could tempt some cardholders to only pay the minimum, leading to accumulating interest and potentially high debt.

The RBI's new regulation aims to address this by raising the minimum due amount. While the exact percentage varies depending on your outstanding balance and SBI Card's internal calculations, the minimum amount will be significantly higher than before. This change is designed to encourage cardholders to pay a larger portion of their outstanding balance each month, thus reducing the chances of falling into debt traps and improving overall financial health.

Key Changes Introduced on July 15th:

• Higher Minimum Due: The most significant change is the substantial increase in the minimum due amount. Expect to pay considerably more than you did previously.
• Increased Transparency: SBI Card is expected to provide clearer and more detailed statements outlining the calculation of the minimum due amount, enabling better understanding and financial planning.
• Focus on Reducing Debt: The primary goal of this regulation is to discourage the habit of only paying the minimum due, which often results in high interest charges and prolonged debt.
• Impact on Credit Score: Failing to pay even the increased minimum due will negatively impact your credit score, making it harder to secure loans or credit in the future.

How the New SBI Card Minimum Due Affects You

The increased minimum due amount will directly impact your monthly budget. If you've been accustomed to paying only the minimum, you'll need to adjust your spending habits and financial planning. Here's what you need to consider:

• Budget Review: Conduct a thorough review of your monthly expenses and income to determine how much extra you can allocate towards your SBI Card payment.
• Debt Management Strategies: If you're struggling to pay the higher minimum due, explore debt management strategies like debt consolidation or contacting SBI Card's customer service for potential assistance programs.
• Reduced Spending: Consider reducing discretionary spending to free up funds for your credit card payment.
• Increased Repayment: Prioritize paying more than the minimum due each month to reduce the outstanding balance faster and minimize interest charges.

Calculating Your SBI Card Minimum Due After July 15th

While the exact formula used by SBI Card to calculate the minimum due amount is proprietary, it's likely to include a larger percentage of your outstanding balance, possibly incorporating a minimum fixed amount as well. Always refer to your monthly statement for the precise amount. The statement will now provide a much more detailed breakdown of how the minimum amount is calculated.

Steps to Check Your Minimum Due:

• Online Access: Log in to your SBI Card online account to view your statement and see the calculated minimum due amount.
• Mobile App: Use the SBI Card mobile application to access your statement and the minimum due amount.
• Statement of Account: Check your physical statement of account, which will clearly show the minimum amount due and its calculation.

Avoiding Late Payment Fees on Your SBI Card

Paying at least the minimum due amount by the due date is crucial. Late payments will incur significant penalties, negatively affecting your creditworthiness. Set up automated payments or reminders to ensure timely payments.

Frequently Asked Questions (FAQs)

Q: What happens if I only pay the minimum due on my SBI Card?

A: While you'll avoid immediate late payment fees, you'll continue to accrue interest on the remaining balance. This can significantly increase your overall debt and negatively impact your credit score over time. It's advisable to pay as much as possible towards your outstanding balance.

Q: How can I contact SBI Card for assistance?

A: You can contact SBI Card customer service through their website, mobile app, or by phone. They can provide clarification on your statement and answer any questions you may have about the new minimum due calculation.

Q: Will this new rule affect my credit limit?

A: No, this rule only affects the minimum amount you're required to pay each month; it doesn't change your credit limit.

Q: What if I'm unable to pay the increased minimum due?

A: Contact SBI Card's customer service immediately. They may offer assistance programs or repayment plans to help you manage your debt effectively.

The new SBI Card minimum due amount rule is a significant change, but by understanding the implications and taking proactive steps, you can navigate this change effectively and maintain good financial health. Remember, responsible credit card management is key to avoiding debt and maintaining a strong credit score. Stay informed, plan ahead, and prioritize paying more than the minimum due whenever possible.