If you are an SBI credit card user, pay close attention to this news. SBI Card has announced some major changes in rules for select cards, effective July 15, 2025. These changes pertain to the SBI card payment system and the benefits available on some cards.
From July 15, 2025, the minimum amount due (MAD) of your credit card will be calculated in this new way:
The method of calculating the minimum amount due (MAD) of your credit card will change from July 15. MAD calculation will be as follows: 100% of GST + 100% of EMI amount + 100% of fees/charges + 100% of finance charges + overlimit amount (if any) + 2% of remaining balance outstanding. This means that now the method of escaping by just paying a little amount will not work. You will have to pay a higher amount, otherwise the dues will keep increasing.
Also read: Punjab National Bank waives penalty charges for not maintaining minimum balance in savings accounts
Process of payment settlement has also changed
Along with this, the process of payment settlement has also been changed. Now whenever you make any payment, it will be adjusted in this order – first GST, then EMI, then charges, finance charges, balance transfer, then retail expenses and finally cash advance. This means that if you have not paid any charge or interest, then your remaining payments will be adjusted in it and interest will keep increasing on the amount of the actual expenditure.
Now you will not get free air accident cover
The air accident insurance coverage of Rs 50 lakh to Rs 1 crore available on many cards till now is being discontinued. These changes will be effective from 15 July and 11 August 2025.
With effect from August 11, 2025, complimentary air accident insurance coverage of Rs 1 crore currently offered on your UCO Bank SBI Card ELITE, Central Bank of India SBI Card ELITE, PSB SBI Card ELITE, KVB SBI Card ELITE, KVB SBI Signature Card and Allahabad Bank SBI Card ELITE will be discontinued.
Likewise, complimentary air accident insurance coverage of Rs 50 lakh currently offered on your UCO Bank SBI Card PRIME, Central Bank of India SBI Card PRIME, PSB SBI Card PRIME, KVB SBI Card PRIME, Karur Vysya Bank SBI Platinum Credit Card, South Indian Bank SBI Card PRIME, South Indian Bank SBI Platinum Credit Card, Karnataka Bank SBI Card PRIME, Karnataka Bank SBI Platinum Credit Card, City Union Bank SBI Card PRIME, Allahabad Bank SBI Card PRIME, UBI SBI PLATINUM Credit Card, OBC SBI VISA PLATINUM Card, Federal Bank SBI Platinum Credit Card, BOM SBI PLATINUM Credit Card will also be discontinued.
Also read: Big money-related changes coming in July: Know new financial rules effect on your pocket
Earlier in March and April also the benefits of some cards were removed:
March 28, 2025: Issue of Yatra SBI Credit Card discontinued.
From 1 April 2025: Free tickets (renewal and milestone benefits) on Club Vistara SBI Card and Club Vistara SBI Card PRIME have been discontinued. However, the renewal fee of these cards has also been waived off.
From 11 March 2025: Etihad Guest SBI Credit Cards and Etihad Guest Premier SBI Cards are completely discontinued.
What should card holders do?
If you use these cards, then re-review the benefits and charges of your card. Features like air accident cover are now ending, so it is important that you know your options and consider upgrading or closing your card if needed.
