SBI Card, an arm of Indian public sector lender State Bank of India (SBI), has introduced new credit card with zero annual fee, to target the bank's low-income segment.
The new credit cards will be offered to every account holder who has a balance of INR20,000 ($308.4) – INR25,000 ($385.50).
The bank said that the new credit card will be offered with zero annual fees for four years and it does not require a credit history of the account holder. The lender will offer the credit card through its network of more than 20,000 branches.
Cardholders can avail a number of benefits including fuel surcharge waiver across petrol pumps in India, one reward point earning for every INR100 ($1.54) spent. They can exchange their reward points for attractive gifts from the exclusive Rewards Catalogue.
State Bank of India chairman Arundhati Bhattacharya said: “Lack of credit history has been a challenge in increasing credit card penetration in the country.
“In such a scenario, this card is likely to enhance credit card penetration and facilitate in generation of credit history for new users, which will eventually help bringing them into organised financial stream.”
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Separately, the bank is also in the process of increasing its stake in SBI Card to 74% by acquiring stakes from GE Capital, which currently holds a 40% stake in the SBI Card.