Credit card users will not be able to able to avail a 0.75 per cent cashback that state-owned oil companies had introduced almost over two-and-a-half-years ago to promote digital transactions, reported news agency PTI.
Banks have sent text messages to customers, notifying about the discontinuation of the cashback offer starting October 1. Two such messages sent to State Bank of India and American Express customers have been seen by India Today.in.
“Dear SBI credit cardholder, as advised by Public Sector Oil Marketing Companies, the 0.75 per cent cashback on fuel transactions will be discontinued w.e.f October 1, 2019.”
It is likely that other banks will follow suit as the instruction has come from state-owned oil companies.
The cashback offer was introduced in the aftermath of demonetisation in 2016 when the government had asked Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) to offer a discount on card payments for promoting digital payments.
According to the report, a key reason behind the move could have been extra pressure on oil marketing companies due to the discounts on credit card payments.
An industry official told the news agency the discounts offered on all credit cards will be discontinued from October 1.
He, however, added that discounts on debit cards and other digital modes of payment will continue as before.