SBI Card has announced several important changes for its credit card users. These new rules will come into effect from July 15, 2025.
The changes include the removal of free air accident insurance, a new way to calculate the Minimum Amount Due (MAD), and updates in payment settlement rules.
Free Air Accident Insurance to End
Until now, many SBI premium credit cards provided free air accident insurance.
But from July 15, 2025, this benefit will no longer be available. Several other features are also being changed.
SBI Card ELITE, Miles ELITE, and Miles PRIME:
The ₹1 crore air accident insurance cover available with these cards will be removed.
SBI Card PRIME and PULSE:
The ₹50 lakh cover offered on these cards will also be discontinued.
Co-branded Cards:
For co-branded cards, this facility will end from August 11, 2025. These include cards issued in partnership with different banks.
₹1 Crore Cover to be Discontinued On:
ELITE cards issued by UCO Bank, Central Bank of India, Punjab & Sind Bank (PSB), Karur Vysya Bank (KVB), and Allahabad Bank.
New Rules for Minimum Amount Due (MAD)
The Minimum Amount Due on SBI cards will now be calculated as:
100% of GST
100% of EMI amount
100% of fees and other charges
100% of finance charges
Any over-limit amount (if applicable)
2% of the remaining outstanding amount
This means the MAD may now be higher and can lead to more interest if not paid on time.
₹50 Lakh Cover to be Discontinued On:
This includes Prime Cards from UCO Bank, Central Bank of India, PSB, KVB, South Indian Bank, Karnataka Bank, City Union Bank, and Allahabad Bank.
Also affected are Platinum Cards from Union Bank of India (UBI), Oriental Bank of Commerce (OBC), Federal Bank, and Bank of Maharashtra.
New Payment Structure
When you pay your outstanding card amount, it will be adjusted in this order:
GST
EMI Amount
Fees and Charges
Finance Charges
Balance Transfers
Retail Expenses
Cash Advances
Advice for SBI Cardholders
SBI credit card users are advised to carefully review these upcoming changes and plan their spending and repayments wisely.
These updates may impact card expenses and EMI planning, so understanding them in advance will help avoid any inconvenience or extra charges.
