The Most Important Terms and Conditions (“MITC”) are to be read and understood in conjunction with the Terms and Conditions.
The Corporate Credit Card is issued by SBM Bank India Ltd (“SBM Bank” or “Bank”) in partnership with Karbon i.e. the solution, owned and operated by Interropac Private Limited.
A. Fees payable on the Credit Card by the Cardholder
• Annual Fees • Renewal Fee
The fees may vary for each Cardholder, and from offer to offer. The
same is communicated to the Cardholder at the time of applying for the Credit Card. The above fees as applicable are billed to the card account and are stated in the card statement of the month in which it is charged.
B. Cash Advance Fees
The Cardholder can use the Card to access cash in an emergency from ATMs in India or abroad. A transaction fee of 1.75 % of Amount (Minimum fee of Rs 150/-) plus GST. would be levied on the amount withdrawn and would be billed to the Cardholder in the next statement. The transaction fee is subject to change at the discretion of SBM Bank.
C. Charges
i) Charges and fees, as may be applicable from time to time, are payable by Cardholder for Specific services provided by SBM Bank to the Cardholder or for defaults committed by the Cardholder with reference to his/her card account.
ii) SBM Bank retains the right to alter any charges or fees from time to time or to introduce any new charges or fees, as it may deem appropriate, with due intimation to customers.
iii) The Bank, in its sole discretion, reserves the right to honour transactions above the approved credit limit or the card on a case-to- case basis subject to internal guidelines and policy of the Bank.
D. Interest Free Period
The interest free credit period could range from 15 to 45 days subject to the scheme applicable on the Specific Credit Card (please refer to the Schedule of Charges) and the submission of claims by the merchant. However, this is not applicable if the Previous statement’s balance has not been cleared in full. For instance, the SBM Bank Corporate Card has an interest-free credit period of up to 45 days. This means that a customer who has a billing date of 4th of the month can spend on his Card from 5th April to 4th May, his bill will be generated on 4th May and his Payment Due Date will be 19th May. Hence a purchase made on 14th April will have a credit period of 36 days, while a purchase made on 2nd May will have a credit period of 18 days. This period will be free of interest only if all previous dues are paid in full and there is no unpaid balance carried over from previous months.
Finance charges are payable at the monthly percentage rate (please refer schedule of charges) from the date of transaction in the event of the Cardholder choosing not to pay his balance in full. Finance charges are debited to the Cardholder’s account till the outstanding on the card is paid in full. When the customer carries forward any outstanding amount, a finance charge calculated by average Daily Balance Method, will apply to balances carried forward and to fresh billings.
For a list of charges that may be levied at specific instances, please refer to the Schedule of Charges available at the start of this document.
Please note that the entire Schedule of Fees and Charges (given below), benefits and features may change at any point of time at the discretion of SBM Bank without prior notice to customers
1. Schedule of Charges. Joining Fees, Annual Fees and Supplementary Card Fees
Joining Fee : ₹0
Annual Fee/Renewal Fee: ₹0
Supplementary Card Fee: ₹ 0
2. Finance Charges
Overdue Interest on Extended Credit: Annual: 36.00% - Monthly: 3.00%
Interest on Cash Advances: Annual: 36.00% - Monthly: 3.00%
The interest rate may vary dynamically based on the customer’s repayment behavior and performance.
3. Other Fees and Charges
Cash Advance Fees: 1.75 % of Amount (Minimum fee of Rs 150/-) plus GST.
Late Payment Charges: 3% plus GST of outstanding amount
Over Limit Charges: NACard Replacement Cost: ₹500 + GST
Foreign Currency Transaction Charge: 3% plus GST of the transaction amount
Interest Free Period(Grace Period): 30 days and 5 days grace period
Duplicate Statement(Beyond 3 Months): ₹0
GST Applicable on Fees and Charges: 18 % or as may be directed by Government
Charges in foreign currency: If a transaction is made in a currency other than Indian Rupees, that transaction will be converted into Indian Rupees. The conversion will take place on the date the transaction is settled with SBM Bank, which may not be the same date on which the transaction was made. If the transaction is not in US Dollars, the conversion will be made through US Dollars, by converting the charged amount into US Dollars and then by converting the US Dollar amount into Indian Rupees.Unless a specific rate is required by applicable law, the conversion rate from US Dollar to Indian Rupees will be at the rates provided by VISA, as the case may be, on the settlement date, increased by a Currency Conversion Factor assessment (currently 3%) on such transactions.
Illustration on Interest Free (grace) period
Interest free period will not be available if you have not paid the previous month’s outstanding amount in entirety. Interest free period from the start of the billing cycle date shall not exceed 45 Days. Payment Due Date on your Card is 15 days after the Statement Date (Please check your statement for your exact Payment Due Date). Therefore, the free credit period can range from 30-45 days depending on your Payment Date.
Illustrative Example for Interest Free Period Calculation:
For a statement for the period 09th April to 08th May, the payment due date is 22th May. Assuming you have paid Your previous month's dues in full, the interest free period would be: For the purchase dated 15th April interest free grace period is from 8th May to 22nd May = 15 days and for the purchase dated 2nd May, interest free grace period is from 8th May to 22nd May = 15 days.
SBM Bank at its sole discretion will determine the Cardholder’s credit limit and cash withdrawal limit. (Add-on Cardholders share the same limit). These limits are communicated to the Cardholder at the time of card delivery and in the monthly statements. The available credit limit at the time of the statement generation is provided as a part of the monthly statement. Credit limit on any card account may be reviewed as per the bank policies, Specified from time to time. The bank reserves the right to decrease and/or unconditionally cancel the limit assigned to the card. In such an instance the bank will inform immediately including the reason thereof, by SMS/e-mail followed by Confirmation in writing.
Billing Statements – periodicity and mode of sending: All Card Holder will be billed on a monthly basis for all charges incurred by the use of the Card and for all charges applicable to the respective account related to the Card (“Card Account”). However, there may be no statement generated for the period in which there has been no outstanding due and no transaction on the account in the past month. The billing statement will be dispatched on a monthly basis to by e-mail.
ii. Outstanding payment should be made before the Payment Due Date. Clear funds need to be credited to SBM Bank Card account on or before payment due date to avoid Late Payment Charges (If any). The Cardholder is advised to make the payment to the Communicated account details for the settlement of credit outstanding.
C. Payments made towards the card outstanding are acknowledged in subsequent statements.
D. Payments received against the Cardholder's card outstanding will be adjusted against all Pre-closure of Outstanding amount, GST, Fees & Charges (Other than Finance Charges), Finance Charges, EMI and Retail Purchases in that order.
E. Method of Payment: Payments towards the card account may be made in any of the following ways:
I) In case the Cardholder has an SBM Bank account, he can make the Payment through Net Banking, ATMs, or Phone Banking.
Minimum Amount Payable: There is no minimum amount payable as this is a charge card. The Card Holder has to pay the entire outstanding amount by the due date.
Auto Debit: If customer has registered for auto debit facility towards Card repayment then the same will be executed on the statement date provided no amount is paid by the customer before statement date.
No merchant refund/cashback/credit due to transactions converted to EMI / cancelled transactions / reversals / promotional cashback will be considered as a payment towards the outstanding of the Card. EMI transactions, rewards purchased, and cash transactions will not be eligible for Reward Points.
Customers can login into net banking portal and make payments toward Card outstanding using Net banking of any bank account- Click to Pay/NEFT: Pay Card dues from any of your other bank Savings Accounts using Click To Pay/NEFT.
Billing Disputes Resolution: the Contents of the statement will be deemed to be correct and accepted if the Cardholder does not inform SBM Bank of the discrepancies within 30 days of the Statement Date in writing. On receipt of such information, SBM Bank may reverse the charge on a temporary basis pending investigation. If on completion of subsequent investigations, the liability of such charges is to the Cardholders account, the charge will be reinstated in a subsequent statement. Upon receipt of dispute from customers, within a maximum period of Thirty days, Bank would provide necessary documents, wherever applicable and received from the Member Bank, subject to operating guidelines laid down by the respective franchisee like Visa/Master Card/Rupay etc. Bank shall exercise due care on its part in due course of issuance of card PINs / Codes & and the Bank ensures to share any Confidential data of the customer / cardholder only with the said customer / Cardholder.
GST levied will not be reversed on any dispute on Fee & Charges / interest.
Kindly refer our Customer Protection Policy for electronic banking transactions at :
https://www.sbmbank.co.in/aboutus/sbmassest/pdf/policies/Customer-Treatment-Policy.pdf
G. When the card member receives a merchant refund for a transaction incurred earlier on the card it will be credited to the card account upon receipt which will be adjusted towards the last statement balance / billed outstanding. If the said refund amount is greater than the last statement balance / billed outstanding, then the excess amount post adjustment against last statement balance / billed outstanding will be refunded to your account, provided the said merchant refund had originated from a transaction incurred prior to the last statement date. If the merchant refund received pertains to a recent transaction incurred post the last statement date, then the refund received will be credited to the card account and adjusted against the original transaction. Such credits posted to the Card Account including but not limited to those arising from returned goods or services or cancelled transactions, the Reward Points or cashpoints accrued as per product construct will be reduced / reversed / adjusted.
In case of cancellation of E vouchers that were availed by redeeming reward points, the restoration of reward points, if allowed at the discretion of the Bank, would be allowed at the same rate at which the E vouchers redeemed. Contact Particulars: The Cardholder can contact SBM Bank Credit Cards for making any enquiries or for any grievance redressal through:
• 24 Hour customer Service Call centre and -a detailed list of phone numbers is available below :-
SBM Bank India Ltd.
101, Raheja `First Floor, Free Press Journal Marg, Nariman Point, Mumbai - 400 021, Maharashtra
Phone: 1800 103 3817 or +91 22 4007 1500
E-mail: customercare@sbmbank.co.in
Grievance Redressal/Complaints/Escalation:
Phone: 1800 103 3817 or +91 22 4007 1500
E-mail at: customercare@sbmbank.co.in
Grievance Redressal Official / Nodal Officer: nodal.officer@sbmbank.co.in
https://www.sbmbank.co.in/aboutus/grievance-redressal-mechanism.php
Level 1: Customer Care | customercare@sbmbank.co.in or 1800 103 3817
Level 2: Biju Joe | biju.joe@sbmbank.co.in
Level 3: Prakash Narayanan | Prakash.narayanan@sbmbank.co.in
SBM Bank submits the Card Holder’s data to CIBIL - Credit Information Bureau (India) Limited every month in the format prescribed by CIBIL. This data includes the repayment status of all Cardholders, both defaulters and current, for the previous month. CIBIL uploads the submitted data onto their server in another thirty days.
I understand that the usage of the SBM Bank International Credit Card(s) shall be strictly in accordance with exchange control regulations. applicable laws or regulations of the Regulatory authorities as applicable from time to time, which I undertake as my responsibility to keep myself updated and also that the card will not be used for prohibited transactions including but not limited to Forex trading, lottery, betting, gambling, dating and in the event of any failure to do so, I will be liable for action under the Foreign Exchange Management Act 1999 or its statutory modifications or re- enhancement or any other applicable law thereof.
A. The Cardholder may terminate the card membership at any time by writing to SBM Bank at the following address: “SBM Bank India Ltd.
101, Raheja `First Floor, Free Press Journal Marg, Nariman Point, Mumbai - 400 021". along with the cards cut diagonally to pieces. All the cards including the add-on cards will be terminated basis the written request. Termination will be effective only after receipt of the cut cards and payment of all amounts outstanding to the card account. No annual, joining or renewal fees shall be refunded on a pro-rata basis.
In case any customer wishes to close /surrender the card – the customer may place the request through below channels.
Contact details for the cardholder to initiate closure :-
Contact no. 1800 103 3817 or +91 22 4007 1500
Email: customercare@sbmbank.co.in
Please note that if a credit card has not been used for a continuous period of 1 (one) year, the Bank will intimate the cardholder about non-usage of the card and request the cardholder to start using the card within 30 (thirty) days from the date of such intimation. If either no reply is received from the cardholder or the cardholder does not start using the card within a period of 30 (thirty) days, the card account shall be closed by the Bank, subject to payment of all dues by the cardholder.
B. In case the Bank notices unusual and abnormal transaction patterns in the use of the Card, the Bank will try to establish contact with the customer on the registered phone number of the customer available on its records to verify if the card transaction is bonafide. Upon failure on the part of the Bank to establish contact with the customer, the Bank may restrict / terminate the use of the Card without any further notice, if the Bank reasonably believes it to be necessary in the interest of the Cardholder and / or for security reasons. SBM Bank can suspend the facility on the Credit Card, if the Cardholder defaults on payment due or exceeds the credit limit extended. The Credit Card must not be used after the Agreement has ended or if the card account is suspended.
C. In such a situation, the Cardholder must (subject to any default or other notice required by law) immediately pay SBM Bank the total outstanding Balance on the Account. This includes all amounts due to SBM Bank under the Agreement, including all transactions and other amounts not yet charged to the Account. The card will not be considered as closed until the Cardholder has paid all such due amounts.
D. Any transactions incurred by the Cardholder prior to the closure of card and which is presented / claimed at a later point by the merchant shall be billed to the Cardholder for effecting necessary payments towards such transactions. The Cardholder shall be obligated to pay for any transactions which were incurred prior to the closure date of the card and the Bank shall report these outstanding payments of the Cardholder to CICs, if not paid by the Cardholder.
E. The death or incapacitation of a Cardholder, insolvency / dissolution / bankruptcy / or winding up of a Corporate Body of a Cardholder shall automatically cancel the card issued to the Cardholder as well as any Add-on Cardholders. The Card Account would also be liable to be suspended on instructions from any government / regulatory body. All amounts outstanding on the Card Account shall be deemed to have immediately become Due on death or incapacitation, insolvency, bankruptcy, winding up or instruction from government / regulatory bodies, as the case may be, and Bank shall be entitled to recover the same in accordance with the relevant laws in force without prejudice to the obligation of the Cardholder to forth with pay all outstanding amounts.
Loss/theft/misuse of card
Customer Protection:
In case of loss/theft/ misuse of card, the Bank shall be guided by the 'Customer compensation Policy' updated on the website of the Bank which has been formulated based on the RBI circular on Customer Protection – Limiting Liability of Customers in Unauthorised Electronic Banking Transactions' as updated from time to time. (RBI Circular - ref. DBR.No. Leg. BC.78/ 09.07.005/2017-18 dated July 6, 2017) Please Note you can refer the Customer Protection Policy Note by visiting https://www.sbmbank.co.in/aboutus/sbmassest/pdf/policies/Customer_Compensation_Sub_Policy.pdf.
If a customer suspects any unauthorized transaction, the customer should inform the bank through the following channels: for blocking of card to avoid further unauthorized transaction or misuse. In case of loss / theft / misuse of the card, customer can immediately hotlist / block the card by raising a request through below channels
The Cardholder is to notify the 24 hour call centre immediately if the Primary or Additional Credit Card is misplaced, lost, stolen, mutilated, not received then due or if he / she suspects that the credit card is being used without Cardholder's permission. Once a card is reported lost, it shall not, under any circumstance be used if found by the Cardholder subsequently. As the Add-On card is an extended facility given on the primary Card Account, the Add-On card is rendered invalid when the Primary card is reported lost. Similarly if the Add-On card is reported lost, the Primary Card Account and other Add-On cards are invalidated. In case of loss / theft / misuse of the card, customers can immediately block the card.
B. The bank is not liable or responsible for any transactions incurred in the card account prior to time of reporting of the loss of the card, and the Corporate will be wholly liable for the same. After the receipt of proper notification of the loss by the Bank, the corporate subsequent liability is zero. In addition to notifying SBM Bank about the loss or theft of the card, the Cardholder must report any theft of cards to the Police and lodge an FIR and provide the acknowledgment copy of the police complaint to the Bank.
C. The Cardholder will be liable for all losses in case of misuse of the card by someone who obtained the PIN or the card with the consent of the corporate. The Cardholder is under obligation to take all appropriate steps to keep the card (including the add-on card/s)safe and not to record the PIN, One Time Password (OTP) or any other token/code issued from time to time, in any form that would be retrievable or otherwise accessible to any third party if access is gained to such a record, either honestly or dishonestly.
D. If the Cardholder has acted fraudulently, the Cardholder would be liable for all losses. If the Cardholder acts without reasonable care, the Cardholder may be liable for all losses incurred.
E. SBM Bank may, without referring to the Cardholder, give the police or relevant authorities any information that SBM Bank considers relevant about the loss, theft or misuse of a Card or PIN.
. In line with RBI mandate, basis the nature and purpose of transactions carried out on your credit card, customers are advised not to make any payment to the credit card through FCRA accounts. In case, if any payments are observed through these accounts, customer may receive a notice from the Ministry of Home Affairs seeking explanation for such payments.
.
The Cardholder acknowledges that as per existing business practices, the Bank can disclose from time to time any information relating to the Credit Card(s), to any credit bureau (Existing or Future) The Credit Information Companies are an initiative of the Government of India and Reserve Bank of India to improve the functionality and stability of the Financial system. All banks and Financial institutions participating in this initiative are required to share customer data with Credit Information Companies and this information is being provided in the terms of the Credit Information Companies Regulation Act, 2005. In view of this we wish to inform the Cardholder that the bank can disclose any information relating to credit card(s)default by the customer to the Credit Information Companies to any other credit bureau (Existing and Future) in case the card is overdue, with due intimation to the cardholder . The Bank hereby informs the Cardholder that fresh/ update on cardholder's data on receipt of payment towards overdue card accounts will reflect in CIBIL / other credit bureaus within a period of 30(Thirty) days from the date of receipt of payment by the bank. We also wish to inform the Cardholder that the bank will, at its own discretion, record specific conversations between the Cardholder and the representative of the Bank, in cases of grievance-related conversation or payments-recovery-related conversations or any other conversations, that the Bank may deem fit. For information on updating nominee details and terms and conditions, please refer to usage guide. Please refer RBI circular ref. DBR.No. Leg.BC.78/09.07.005/2017-18 dated July 6, 2017 on Customer Protection – Limiting Liability of Customers in Unauthorised Electronic Banking Transactions' as updated from time to time. If a customer suspects an unauthorized transaction, the customer should inform the bank through Phone Banking, and initiate blocking of the card to avoid further unauthorized transactions.
SBM Bank shall have the right to transfer, assign and sell in any manner, in whole or in part, the Card outstanding and dues to any third party of its choice without reference or intimation to the Card Holder. Notwithstanding any such sale, assignment or transfer, SBM Bank shall be fully empowered to proceed against the Card Holder. The Card Holder shall be liable for all costs and expenses on account of any such assignment, sale or transfer and recovery of outstanding and dues.
All disputes are subject to the exclusive jurisdiction of the competent courts in Mumbai or Bangalore only.
MITC SBM Bank shall have the absolute discretion to amend or supplement any of the terms and conditions specified in MITC, features and benefits offered on the Card including, without limitation
to, changes
which affect existing balances, interest charges or rates and methods
of calculation at any time. The Card Holder shall be liable for all charges incurred and all other obligations under these revised terms and conditions until all the amounts under the Card are repaid in full. SBM Bank may communicate the amended Terms by hosting the same on the internet banking or in any other manner as decided by SBM Bank. The Card Holder shall be responsible for regularly reviewing these terms and conditions specified in MITC including amendments thereto as may be posted on the internet banking and shall be deemed to have accepted the amended terms and conditions specified in MITC by continuing to use the Card. Any change in the terms and conditions specified in MITC shall be communicated to the Card Holder, in the manner as aforesaid, one month prior to the date of their
implementation.
All notices or other communications under or in connection with terms and conditions specified including all amounts due from the Card Holder shall be given in writing to SBM Bank (India) Limited or Interropac Private Limited, and, unless otherwise stated may be made by letter or facsimile. Any such notice or other communication will be deemed to be effective:
Provided, however, that no notice or communication to SBM Bank or Interropac Private Limited shall be effective unless actually received and acknowledged by SBM Bank or Interropac Private Limited. Notices or communication may be made to:
In the event of any failure by the Card Holder to notify SBM Bank or Interropac Private Limited in writing of any changes in its contact address or details, service of a notice/ correspondence to the address specified in the Application Form or last given by the Card Holder shall be deemed to be proper and sufficient service on the Card Holder irrespective of whether or not such notice shall be returned “unserved” to SBM Bank or Interropac Private Limited. A notice published in the newspaper available in the area of residence or work of the Card Holder shall be sufficient notice to the Card Holder from the date of its publications; provided however, a notice in a newspaper shall not be effective against SBM Bank unless acknowledged by SBM Bank.
SBM Bank may, at its sole discretion, utilize the services of external service provider/s or agent/s and on such terms as required or necessary, in relation to its products/ services. SBM Bank and SBM Bank’s logos are trademark and property of SBM Bank Ltd. Any misuse of any intellectual property, or any other content displayed herein is strictly prohibited.
Any notice or communication to be sent on following co-ordinates:
Address: SBM Bank (India) Ltd., 306 - A, The Capital, G block, Bandra-Kurla Complex, Bandra East, Mumbai 400 051, Maharashtra
Tel No: +91 022 4007 1500 or +91 828 756 9687
Mail ID: customercare@sbmbank.co.in
SBM Bank shall not, in any way, be responsible for merchandise, merchandise warranty or services purchased, or availed of by the Card Holder from merchant, including on account of delay in delivery, non- delivery, non-receipt of goods or receipt of defective goods by the Card Holder. It must be distinctly understood that the Card is purely a facility to the Card Member to purchase goods and/or avail of services, SBM Bank holds out no warranty or makes no representation about quality, delivery or otherwise of the merchandise. Any dispute or claim regarding the merchandise must be resolved by the Card Holder with the merchant. The existence of the claim or dispute shall not relieve the Card Holder of his obligation to pay all the Charges to SBM Bank and the Card Holder agrees to pay such charges promptly.
to the balance of any account(s) held by the Card Holder with SBM Bank and/or its group companies notwithstanding that the deposit(s)/ balances lying in such account(s) may not be expressed in the same currency as such indebtedness. SBM Bank’s and its group companies’ rights hereunder shall not be affected by the Card Holder’s bankruptcy, death or winding-up. It shall be the Card Holder’s sole responsibility and liability to settle all disputes/ objections with any such joint account holders.
SBM Bank reserves the right to offer to the Card Holders, whose accounts have been maintained in good standing as per the credit norms of SBM Bank, certain facilities, memberships and services at such fees and on such terms and conditions as it may deem fit. SBM Bank reserves the right to waive or reduce the fees and to withdraw such benefit at any time without prior notice and without liability to the Card Holder. Any termination of membership, because of a violation of these Terms and Conditions, shall result automatically in the termination of such facilities and services. SBM Bank shall not be liable, in any way, to the Card Holder, in case of defect or breach in the performance of carrying out such facilities, memberships or services or the non-performance thereof, whether by SBM Bank, or a merchant or any other third party. SBM Bank reserves the right to use the information provided by the Card Holder on his application and during surveys, information from external sources, including consumer reports, for marketing activities carried out by SBM Bank / Affiliates. SBM Bank may use this information to develop mailing lists that may be used by companies with whom SBM Bank shall work to develop marketing offers for the Card Holders. SBM Bank reserves the right to revise the policies, features and benefits offered on the Card from time to time and may notify the Card Holder of any such revisions/ changes in any manner as deemed appropriate. The Card Holder will be bound by such revisions/changes unless the Card is returned to SBM Bank for cancellation before the date on which the revisions/changes are made. The details of all transactions recorded in the Card Account of the Card Holder may be shared with credit reference agencies, lenders and/or other agencies for the purposes of assessing further applications for credit by the Card Holder and/or his family members, and for fraud prevention. In addition to the general right to set off or other right conferred by law or under any other agreement, SBM Bank may, without notice, combine or consolidate the standing balance on the Card Account with any other account(s) which the Card Holder
maintains with SBM Bank and its Group Companies, and set-off or transfer money standing to the credit of such other account(s) in or towards the satisfaction of the Card Holder’s liability to SBM Bank under his Card Account. The Card Holder shall forthwith notify SBM Bank of any change in his name, address, contact number and email id for communication as stated in the application form for the Card. SBM Bank reserves the right to change the Card Holder’s address in its records if such change in address comes to the notice of SBM Bank. The responsibility shall be solely of the Card Holder to ensure that SBM Bank has been informed of the correct address for communication, and SBM Bank disclaims all liability in case of an incorrect address resulting in any loss or liability for the Card Holder. The Card Holder shall comply with all such terms and conditions as SBM Bank or its Affiliates may prescribe from time to time for facilities/ services availed of by the Card Holder. All such transactions effected by or through facilities for conducting remote transactions including the Internet, World Wide Web, electronic data interchange, call centres, teleservice operations (whether voice, video, data or combination thereof) or by means of electronic, computer, automated machines network or through other means of telecommunication, established by or on behalf of SBM Bank or its Affiliates, for and in respect of such facilities/ services offered, shall constitute legally binding and valid transactions when done in adherence to and in compliance with the terms and conditions prescribed by SBM Bank or its Affiliates for such facilities/ services, as may be prescribed from time to time.
Disclaimer:
*SBM Bank may at its sole discretion, utilize the services of external service provider/s or agent/s and on such terms as required or necessary, in relation to the Cards.
ADDITIONAL SCHEDULE - Income Recognition, Asset Classification and Provisioning pertaining to Advances- Clarifications (IRACP)
With reference to the Commercial / Corporate Credit Card application submitted by me/ us, I/we confirm having understood the following concepts and illustrative examples (as detailed below) related to due dates, classification of my/our Card as Special Mention Account(SMA)/ Non-Performing Asset(NPA) in the course of the conduct of the Credit Card
Dues:
Means, the principal/interest/ any charges levied on the credit card which are payable within the period stipulated as per the terms of sanction of the credit facility / payment due date mentioned in the monthly statement.
Overdue:
Means, the principal & interest/ any charges levied on the credit card which are payable but have not been paid within the period stipulated as per the terms of sanction of the credit facility. In other words, any amount due to the bank under any credit facility is 'overdue' if it is not paid on the due date fixed by the bank.
Appropriation of payments:
Payments received against the Card member's card outstanding will be adjusted against all taxes, fees and other charges, interest charges, cash advances and purchases in that order.
if in any credit card as on 1st Feb'21 there are no over dues and an amount of Rs. X is due for payment towards principal /interest/charges, any payment being credited on or after 1st Feb'21 in the credit card will be used to pay off the dues outstanding on 1st Feb'21
Assuming that nothing is paid lor there is partial payment (Rs Y) of dues during the month of February, the overdue as on 1st Mar'21 will be Rs. X-Y.
Additionally, an amount of Rs. Z becomes due as on 1st Mar '21, Now any payment / partial payment into the account on or after 1st Mar'21 will be First utilized to pay off the partial due of 1st Feb '21 ( Rs X - Rs. Y) If there is more recovery than the Rs X - Rs Y then after recovering dues of 1st Feb '21, the remaining amount will be treated as recovery towards the due of 1st Mar'21.
Age of oldest Dues:
The age of oldest dues is reckoned in days from the date on which the oldest payment is due and continues to remain unpaid. In the aforesaid illustration, if the Dues relating to 1stFeb'21 remain unpaid till 1st Mar'21, the age of the oldest dues is reckoned as 30 days on 2nd Mar'21.
Classification as Special Mention Account (SMA) and Non-Performing Asset (NPA):
Lending institutions will recognize the incipient stress in card accounts, immediately on Default, by classifying them as Special Mention Accounts (SMA) The basis of classification of SMA / NPA Category shall be as follows:
Outstanding in the Charge card account (For chargecard dues referred hereinto is the Total Amount Due as mentioned in the card statement.)
SMA Sub-categories : Basis for classification – Principal or interest payment or any other amount wholly or partly overdue categories
SMA-0 : Up to 30 days
SMA-1 : More than 30 days and up to 60 days
SMA-2 : More than 60 days and up to 90 days
Non-performing Asset :
A charge card account will be treated as non-performing asset if the total amount due, as mentioned in the
statement, is not paid fully within the payment due date mentioned in the statement.
Illustrative movement of an account to SMA category to NPA category based on delay 1 non- payment of dues and subsequent upgradation to Standard category during End of Day (EOD) process (considering February as a non-leap year month): Dues referred hereinto is the Total Amount Due as mentioned in the credit card statement.
Due date of payment
Payment Date
Payment covers
Age of oldest dues in day covers
SMA/NPA
categorisation
SMA since/ SMA class date
NPA categorization
NPA Date
01/02/2022
01/02/2022
Payment dues as mentioned in the statement up to 01.01.2022
0
NIL
NA
NA
NA
01.02.2022
01.02.2022
No payment or part payment of-
dues of 01.02.2022
1
SMA-0
01.02.2022
NA
NA
01.02.2022
01.02.2022
No payment or part payment of-
dues of 01.02.2022
2
SMA-0
01.02.2022
NA
NA
01.03.2022
Dues of 01.02.2022 not fully paid 01.03.2022 is also due at EOD 01.03.2022
29
SMA-0
01.02.2022
NA
NA
Dues of 01.02.2022 fully paid, Due for 01.03.2022 is not paid at EOD 01.03.2022
1
SMA-0
01.03.2022
NA
NA
No payment of full dues of 01.02.2022 and 01.03.2022 at EOD 03.03.2022
31
SMA-1
01.02.2022/
03.03.2022
NA
NA
Dues of 01.02.2022 fully paid, Due for 01.03.2022 is not paid at EOD 01.03.2022
1
SMA-0
01.03.2022
NA
NA
01.04.2022
No Payment of dues of 01.02.2022, 01.03.2022 and amount due on 01.04.2022 at EOD 01.04.2022
60
SMA-1
NA
NA
No Payment of dues of 01.02.2022 till 01.04.2022 at EOD 02.04.2022
61
SMA-2
01.02.2022/
02.04.2022
NA
NA
01.05.2022
No payment of dues of 01.02.2022 till 01.05.2022 at EOD 01.05.2022
90
SMA-2
01.02.2022/
02.04.2022
NA
NA
No payment of dues of 01.02.2022 till 01.05.2022 at EOD 02.05.2022
91
NPA
NA
NPA
02.05.2022
01.06.2022
01.06.2022
Fully paid dues of 01.02.2022 at EOD 01.06.2022
93
NPA
NA
NPA
02.05.2022
01.07.2022
01.07.2022
Paid entire due of 01.03.2022 & 01.04.2022 at EOD 01.07.2022
62
NPA
NA
NPA
02.05.2022
01.08.2022
01.08.2022
Paid entire due of 01.05.2022 & 01.06.2022 at EOD 01.08.2022
32
NPA
NA
NPA
02.05.2022
01.09.2022
01.09.2022
Paid entire due of 01.07.2022 & 01.08.2022 at EOD 01.09.2022
1
NPA
NA
NPA
02.05.2022
01.10.2022
01.10.2022
Paid entire due of 01.09.2022 and 01.10.2022
0
Standard account with No over dues
NA
NA
STD from 01.10.2022
I/We also understand that the aforesaid few examples are illustrative and not exhaustive in nature covering common scenarios, and that, the IRACP norms and clarifications provided by RBI on the subjects referred above will prevail
SBMbank
Corporate Office:
SBM Bank (India) Ltd.
306 - A, The Capital, G block, Bandra-Kurla Complex, Sandra East, Mumbai 400 OS1, Maharashtra
Tel No: +91 022 4007 1500
Mail ID: customercare@sbmbank.co.in
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