To expand the reach of digital payments from the State Bank of India (SBI) announced new credit cards offer every account holder that has a balance of Rs 20,000 to 25,000. The card will be offered through a network of more than 20,000 SBI branches. The Bank will check the customers credit history and the card, and then will be issued in the name of the 'Unnati' it will remain free for four years. To develop digital payments and encourage adoption of credit cards facilitate the SBI Card Unnati will be offered for free and at zero annual fee, for four years.
SBI has about 30 crore client accounts, including Jan Dhan Yojana. After the demonetization, the balance in these accounts increased significantly. Many customers have no credit history and are not eligible for the cards. We want to achieve financial inclusion in terms of credit facility with this new product. Bank is also in the process of increasing its stake in the SBI card to 74 percent. "Participation will increase in the first quarter of next year, there are few regulatory issues that are sorted.
SBI chairperson Arundhati Bhattacharya said that SBI currently has 60 percent stake in SBICPSL and 40 percent stake in GECBPMSL. The balance is held by GE Capital in both businesses. SBI has approval to infuse Rs 1,160 crore in the two ventures . SBI Cards, Payment Services and GE Capital Business Processes Management Services Ltd through purchase of equity shares from GE Capital so as to increase the bank's stake in both the business to 74 per cent and asked about remaining 26% stake,she said that the decision has to be taken by GE. SBI entered credit card business was started in the year 1998 by securing GE Capital India and consumer finance arm of US-based GE Capital. Now SBI card has 4.3 million users, and the latest offering 'Unnati' targeted at all the SBI customers.