Query regarding 1 year counting method for annual charges

[iM23]

How is 1 year calculated in case of charging annual fees for SBI credit cards (or any other bank's credit cards)? Is it calculated from the date of card activation or the date of 1st statement generation?

 

[Raviteja]

Date of 1st statement generation

 

[rimtesh]

How is 1 year calculated in case of charging annual fees for SBI credit cards (or any other bank's credit cards)? Is it calculated from the date of card activation or the date of 1st statement generation?

you got the answer for it ?

 

[Virtual King]

How is 1 year calculated in case of charging annual fees for SBI credit cards (or any other bank's credit cards)? Is it calculated from the date of card activation or the date of 1st statement generation?

you got the answer for it ?

My Personal Experience
I have BPCL SBI Octane credit card. For the annual fee (Rs 1,499 + 18% GST (=Rs 269.82) = Rs, 1,768.82) waiver, the annual spends have to be more than Rs 2 Lakh. Since I had more than Rs 2L annual spends this year, so I was expecting the annual fee waiver from SBI. And yes, I have been informed about it accordingly. And this is how the whole process works.

Step 1: Calculate the Card Year
The first step is that the annual fee is charged to all the card members, based on their card year.
So, in my case, Octane card was issued (i.e. officially issued/despatched by SBI Cards) on 28 May 24 and I received it a few days later and then activated it on 13 Jun 24. So, actual year is from 13 June 24 - 12 June 25. But officially, the 1st year is from 28 May 24 - 27 May 25. However, hereafter, the card year will be taken as 01 June - 31 May every year. This was confirmed from the customer care.

Step 2: Annual Fees Charged
As per their policy, the annual card fee is charged to all card members as and when due. So, in my bill generation on 1 June 2025, there was the annual card fee charged (Rs 1,499 + 18% GST (=Rs 269.82) = Rs, 1,768.82).

Step 3: Fee Waiver Intimation
Then, as per their process, the back-end calculations of annual spends will be done and all those card members who are eligible for the annual fee waiver, are intimated via SMS within 2-3 days. In my case, bill generation date is 1 June and SMS received on 4 June. The SMS mentions that the waiver will be credited to the card account within 30 days. The customer care confirmed that it will be reflected accordingly in the next statement on 1 July 25.

Step 4: Annual Fee Waived Off
In my case, got an SMS on 8 June that the annual fee waiver has been credited to the credit card account. I checked up through SBI Cards app - and voila ! There were three credit transactions - Rs 1,499, Rs 134.91 and Rs 134.91 i.e. total 1768.82. Thus was the annual fee waived off.

Hope this helps. 🙂