SBI Card, one of India’s top credit card providers, is making important changes to its card policies starting July 15, 2025.
These updates will affect your monthly payments, card benefits, and billing rules, so it’s important to understand what’s changing to avoid surprises.
Air Accident Cover Removed for All Cards
From August 11, 2025, SBI Card will remove the complimentary air accident insurance offered on premium and co-branded cards like ELITE, PRIME, and Miles Elite.
Currently, this benefit covers ₹50 lakh to ₹1 crore in case of an air travel accident.
The removal will affect frequent flyers who relied on this safety cover. They will now need to buy separate travel insurance for protection during air travel.
Minimum Due Amount Will Increase
From July 15, SBI Card is changing how it calculates the Minimum Amount Due (MAD) on your bill. The new MAD will now include:
100% of EMIs
All interest charges
Applicable GST
Over-limit fees
Plus 2% of the remaining outstanding retail and cash spends
Previously, the minimum due was based on a smaller portion, so cardholders could pay less each month.
Under the new system, those who usually pay only the minimum amount will see higher monthly dues.
SBI says this change is meant to promote better repayment habits and reduce long-term debt.
New Rule for Payment Allocation
SBI Card is also updating how your payments are applied. From now on, payments will be adjusted in the following order:
GST
EMI dues
Fees and penalties
Finance charges (interest)
Balance transfers
Retail spending
Cash advances
This new system helps clear high-interest charges first, which may help reduce how much interest you pay overall—if you’re not paying the full amount every month.
What Cardholders Should Do Now
Try to pay the full amount every month to avoid rising interest.
Buy separate travel insurance if you frequently fly.
Check your billing statements carefully after July 15 to understand the impact of these changes.
Why These Changes Matter
Although the changes may seem small, together they reflect a big shift in how SBI Cards work.
The goal is to promote financial discipline, increase transparency, and encourage full repayments—helping users avoid debt traps in the long run.
