The "Payment Dishonour Fee" in an SBI credit card statement refers to a charge levied when a payment made towards the credit card bill is dishonored or rejected by the bank. This typically occurs when the payment method used, such as a check or online transfer, fails to go through due to reasons like insufficient funds, incorrect account details, or a closed account.
The bank imposes this fee to cover the administrative costs associated with processing the failed payment and to discourage customers from defaulting on their credit card payments. It's important to note that this fee is separate from any interest charges that may accrue on the outstanding balance due to the missed payment.
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