SBI Card, a subsidiary of State Bank of India, has announced an important update to the rewards structure of its popular Cashback SBI Card. T
his card is widely used by online shoppers because of its simple cashback system. However, the bank has now reduced some of its benefits, so users may need to rethink how they use the card.
Cashback Limit Reduced
Under the new rules, the maximum cashback you can earn in one monthly statement cycle has been reduced from ₹5,000 to ₹4,000. This means there is a 20% cut in total cashback benefits.
Once you reach ₹4,000 cashback in a month, you will not earn any more cashback for the rest of that billing cycle.
New Limits on Spending Categories
The bank has also introduced limits for different types of spending:
Online Shopping: You will continue to get 5% cashback, but it is now capped at ₹2,000 per month.
Offline (POS) Spending: You will get 1% cashback on offline purchases, also limited to ₹2,000 per month.
To get the full ₹4,000 cashback, you will need to spend in both online and offline categories in a balanced way.
Changes in Reward Points Redemption
The rules for redeeming reward points have also been updated:
Points can now be redeemed only in multiples of 4,000 (like 4,000, 8,000, etc.).
There is a maximum redemption limit of 60,000 points per month.
These new rules apply not just to cashback cards but also to other cards like the PhonePe SBI Card PURPLE and SELECT BLACK.
What Cardholders Should Do
Experts say it is common for banks to update their reward systems from time to time. However, users should check and use their existing reward points before April 1 if possible.
In today’s digital payment era, these changes may affect people the most who depend heavily on a single credit card for most of their spending.
