SBI Card on Tuesday said it will start levying charges on small payments made by cheques. The State Bank of India’s card company said cheque payments for bill amounts under Rs 2,000 will attract a fee of Rs 100. SBI Card is a joint venture between the State Bank of India and GE Capital, which seeks to promote the use of credit cards among SBI customers.

The rule came into effect from April 1, the company said. However, customers making payments using SBI cheques will not incur these charges.

SBI Card Chief Executive Officer Vijay Jasuja said several payment-related disputes arose because of small payments made through cheques, which were inconvenient for customers as well. “We offer several seamless digital modes of payment which we are seeking to encourage, in line with the government’s focus towards digital payments and this step will facilitate the same,” Jasuja said according to PTI.

The CEO also said that the holders of SBI Card Unnati will not be charged under this new rule. Unnati was introduced to bring in first-time credit card users into the fold of cashless transactions, and “aimed at inclusion of people into organised financial stream”, Jasuja added.