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.”
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.