SBI Credit Card Rules Set for Major Overhaul: Higher Minimum Dues, New Payment Order, and Discontinued Insurance from July 15

New SBI Credit Card Guidelines to Reshape Cardholder Experience from July 15

Mumbai, India – SBI Card, one of India's leading credit card issuers, is set to introduce a series of pivotal changes to its credit card rules, with most becoming effective from July 15, 2025. These revisions, which include a revamped Minimum Amount Due (MAD) calculation, a new payment settlement hierarchy, and the discontinuation of complimentary air accident insurance, are poised to significantly alter the financial landscape for its cardholders.

The impending changes aim to streamline payment processes and potentially encourage more disciplined credit usage, but they also carry implications that could lead to higher out-of-pocket expenses for users if not managed carefully.

Stricter Minimum Amount Due (MAD) Calculation

From July 15, 2025, the method for calculating the Minimum Amount Due (MAD) on SBI credit cards will become more stringent. The new calculation will now encompass:

• 100% of Goods and Services Tax (GST)
• 100% of Equated Monthly Installments (EMIs)
• 100% of all fees and charges
• 100% of finance charges
• Any over-limit amount

Additionally, 2% of the remaining outstanding balance will be added to this total. This revised formula is expected to result in a higher minimum payment requirement each month, potentially affecting cardholders who previously relied on paying a smaller portion of their dues.

Revised Payment Settlement Order

Another crucial change effective July 15, 2025, is the updated order in which payments are adjusted against a cardholder's outstanding balance. The new hierarchy prioritizes the settlement of dues in the following sequence:

• GST
• EMI amounts
• Charges and fees
• Finance charges
• Balance transfers
• Retail purchases
• Cash advances

This new order means that if a cardholder has outstanding fees or interest, their payments will first be allocated to these charges. This could lead to interest continuing to accrue on actual purchases, potentially increasing the overall interest burden if the full outstanding amount is not cleared promptly.

Discontinuation of Complimentary Air Accident Insurance

A significant benefit that many cardholders will lose is the complimentary air accident insurance cover.

• Effective July 15, 2025:

  • The ₹1 crore air accident insurance cover on premium cards such as SBI Card Elite, SBI Card Miles Elite, and SBI Card Miles Prime will be discontinued.
  • The ₹50 lakh cover on SBI Card Prime and SBI Card Pulse will also cease.

• Effective August 11, 2025:

  • Complimentary air accident insurance coverage of ₹1 crore will be withdrawn from several co-branded cards, including UCO Bank SBI Card ELITE, Central Bank of India SBI Card ELITE, PSB SBI Card ELITE, KVB SBI Card ELITE, KVB SBI Signature, and Allahabad Bank SBI Card ELITE.
  • The ₹50 lakh cover on SBI PRIME cards from various partner banks and SBI Platinum cards from other banks will also be discontinued.

This change is particularly important for frequent flyers who relied on this benefit for financial protection during travel.

These updates follow other recent adjustments by SBI Card earlier in 2025, including the discontinuation of the Yatra SBI Credit Card on March 28, and changes to Club Vistara cards where free flight tickets were removed but renewal fees waived from April 1.

SBI credit cardholders are advised to review these new rules carefully and adjust their spending and payment strategies to avoid increased costs and ensure optimal financial management.