If you use the Cashback SBI Card, there’s an important update you should know about.
From April 1, 2026, this popular credit card is getting a major downgrade.
The overall cashback benefit is being reduced, and new category limits are being introduced.
Here’s what it means for you.
Monthly Cashback Limit Reduced
Until now, cardholders could earn up to ₹5,000 cashback per month.
There was no separate limit for online or offline spending.
As long as your total cashback stayed within ₹5,000, you were fine.
That changes from April 1, 2026.
The maximum monthly cashback will now be capped at ₹4,000.
More importantly, this ₹4,000 will be split into two categories — online and offline.
You cannot earn the full ₹4,000 from just one type of spending.
This means your rewards potential is now more restricted.
New Online and Offline Cashback Rules
The cashback percentages remain the same, but the limits are tighter.
Online spending:
You will continue to earn 5% cashback on online purchases.
However, the maximum cashback in this category will now be ₹2,000 per month.
To earn the full ₹2,000, you must spend up to ₹40,000 online in a month.
Offline spending:
You will continue to earn 1% cashback on offline purchases.
But here too, the monthly cashback is capped at ₹2,000.
To reach this limit, you would need to spend ₹2 lakh offline in a month.
So even if you spend heavily in just one category, your cashback from that category cannot exceed ₹2,000.
No Cashback in These Categories
From April 1, 2026, no cashback will be given on:
Digital gaming transactions
Toll and FASTag payments
Government payments and taxes
Certain other restricted merchant categories
As before, rent, fuel and utility payments do not earn cashback.
Fuel Surcharge and Other Benefits
There is still some relief for fuel users.
You will not be charged a 1% fuel surcharge for fuel transactions between ₹500 and ₹3,000.
The maximum waiver allowed per billing cycle is ₹100.
The card also supports contactless “tap and pay” payments, allowing you to simply tap the card on the POS machine for quick transactions.
Cashback Is Auto-Credited
One positive feature remains unchanged.
You do not need to redeem cashback manually.
The earned cashback is automatically credited to your card account within two days after your next billing statement is generated.
There are no points to convert or vouchers to claim.
Fees You Should Know
The joining fee for the Cashback SBI Card is ₹999.
The annual renewal fee is also ₹999.
However, this renewal fee is waived if you spend ₹2 lakh or more in a year.
Before April 1, 2026, it may be a good idea to review your spending pattern.
If most of your cashback comes from one category, these new limits could significantly reduce your rewards.
