Starting 1 October, the State Bank of India will discontinue cashback on credit card purchases of fuel as per an advisory from state-owned oil marketing companies.
SBI has been sending text messages to its customers informing the same that reads, "Dear SBI Credit Cardholder, as advised by Public Sector Oil Marketing Companies, the 0.75% cashback on fuel transactions will be discontinued with effect from October 1, 2019. T&C."
The three government-owned oil marketing companies - Indian Oil, Bharat Petroleum and Hindustan Petroleum - provide a cashback of 0.75 percent of the value of fuel purchased using credit cards, debit cards and e-wallets. This amount is credited to the customer's bank account within 3 days of fuel purchase.
This cashback scheme was introduced after demonetization to promote digital payments.
A Mint report citing an oil retailer official said that the advisory has been made to all banks and the cashback would only be discontinued on credit cards from October. The official further said that other digital payments will continue to receive the cashback or discount.
If you hold a fuel credit card from a bank other than SBI, you may also be subject to this change.