SBI Credit Card 2 Big Rule Changes Effective 15 July

SBI Credit Card 2 Big Rule Changes Effective 15 July

The usage of credit cards in India is rapidly increasing, and a huge number of consumers rely on SBI Credit Card for everyday expenses, EMI, travel bookings, and shopping. If you’re also an SBI Credit Card user, this news is crucial for you.

Starting 15 July 2025, SBI Credit Card will implement two major rule changes that can directly impact how much you pay monthly and the benefits you receive. These new changes are applicable across several card variants and are aimed at enhancing credit discipline among users.

Let’s break down what’s changing and how it will affect you.

SBI Credit Card Changes Minimum Amount Due Rule

One of the most significant updates involves how the Minimum Amount Due (MAD) is calculated for SBI Credit Cardholders.

What is Changing in MAD?

Until now, the MAD was usually 2% of the total outstanding balance on your credit card. However, from 15 July 2025, SBI Credit Card will change the structure of this calculation to include:

2% of total outstanding
Full GST amount
EMI balances (if any)
Applicable fees (e.g. annual fee, late fee, overlimit fee)
Finance charges
Any over-limit amount

This means that SBI Credit Cardholders will now be required to pay a higher minimum amount each month, even if they choose not to clear the full bill.

What Does This Mean for You?

This change will increase your monthly liability. Missing or skipping payments may result in late fees, higher interest charges, and even impact your credit score.

It’s important to track your spending and aim to pay your bills in full to avoid financial strain. This step appears to be taken by SBI Credit Card to promote better repayment discipline and reduce credit risk.

SBI Credit Card to End Complimentary Air Accident Insurance

The second major change for SBI Credit Card users is the withdrawal of complimentary air accident insurance coverage that was earlier offered with some premium card variants.

Which Cards Are Affected?

From 15 July 2025, the following SBI Credit Cards will no longer offer air accident insurance:

SBI Card ELITE, SBI Card Miles ELITE, and SBI Card Miles PRIME:
₹1 crore air accident insurance will be discontinued.
SBI Card PRIME and SBI Card PULSE:
₹50 lakh air accident insurance cover will be removed.

Why is SBI Credit Card Doing This?

The bank has cited streamlining benefits and improving operational efficiency as reasons. Additionally, it aligns with the broader trend among banks and financial institutions to review and rationalize free offerings, especially those that are underutilized or add administrative burden.

For users who rely on travel protection, this change means they’ll now need to purchase separate travel insurance when booking flights.

Financial Impact of SBI Credit Card Rule Changes

Let’s look at how these SBI Credit Card rule changes may affect the average user:

Higher Monthly Payments:
Because of the new MAD formula, users will have to pay more upfront, reducing flexibility.
Reduced Risk Coverage:
Users will lose access to ₹50 lakh to ₹1 crore worth of air travel accident protection.
Added Cost of Buying Insurance Separately:
If travel is frequent, users may need to spend more on third-party insurance.
Increased Risk of Late Fees:
If the higher MAD is missed, users may incur additional charges.

What Should SBI Credit Card Users Do Now?

If you use an SBI Credit Card, here are some steps to take immediately:

Review your monthly billing statements carefully.
Plan to pay your total due amount instead of just MAD.
If you travel often, look for affordable air travel insurance plans from third-party providers.
Visit the official SBI Card website to see how these rule changes affect your card variant.
If the card no longer suits your lifestyle, consider switching to another SBI Credit Card or a card from another provider.