There is bad news for the credit card customers of the country's largest bank State Bank of India (SBI).\u00a0 The bank has said that it will levy processing charges as well as tax on all EMI transactions done with its credit cards.\u00a0 SBI Cards and Payment Services Private Limited (SBICPSL), the card arm of SBI, has announced that the company will levy a processing charge of Rs 99 and tax thereon.\u00a0 The new rule will come into effect from December 1, 2021.\u00a0 The bank will also charge this processing charge on all EMI transactions done at retail outlets as well as e-commerce websites like Amazon, Flipkart and Myntra. Information given to cardholders SBI credit card holders have been informed about the new charges through an e-mail.\u00a0 SBI Card has said that from December 01, 2021, every EMI transaction will attract a processing charge and tax of Rs 99.\u00a0 These charges will be levied on any EMI transaction done at the outlet\/website\/app.\u00a0 These rates will be charged on top of the interest charges on converting the payment into monthly EMI on purchase of any item.\u00a0 At present lakhs of people take advantage of this service. No-cost EMI will also be charged Many times many merchants give discount on EMI transactions by paying interest to the bank.\u00a0 This offer is available in the form of 'Zero Interest' to those customers who have purchased something.\u00a0 In this case also, SBI credit card holders will have to pay a processing fee of Rs 99 from December 1.\u00a0 According to reports, the processing fee of Rs 99 will be charged only on those transactions which will be converted into monthly installments or EMI transactions. Processing fee may be reverse On the other hand EMI will be refunded by refunding the processing fee in case of transaction failure or cancellation.\u00a0 However, in case of pre-closure of EMI, it will not be reversed.\u00a0 For transactions done before December 1, but whose EMIs will start after this date, the bank will not charge any processing fee as the old rules will be applicable for them.\u00a0 For transactions converted into Merchant EMI, the company will not apply any reward points. How will the new rule work? Let's say you buy a mobile phone from an e-commerce website, for example Amazon, using your SBI credit card, under the bank's EMI scheme.\u00a0 SBICPSL will then charge you an additional fee of Rs.99 for processing the transaction.\u00a0 It will also charge you tax on this fee.\u00a0 This additional amount will also be reflected in your monthly statement of your credit card along with the EMI amount for that product. Buy now pay letter will be affected According to the report, this new move by SBI Cards will affect the 'Buy Now, Pay Later' scheme, as it may make new purchases more expensive.\u00a0 These options are generally offered by e-commerce websites.\u00a0 SBI Cards and Payment Services (SBI Card) recently said that it will raise Rs 2,000 crore by issuing bonds on a private placement basis.\u00a0 The company's board has approved raising a total of Rs 2,000 crore by issue of non-convertible debentures (NCDs).