New Delhi: SBI Credit Card users, take note! The State Bank of India (SBI) is rolling out significant changes to its credit card rules starting July 15, 2025. These updates will affect how minimum payments are calculated and how payments are adjusted. Additionally, some key complimentary benefits, including insurance, will be withdrawn from select cards.
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Minimum Payment Calculation to Change
Until now, many credit card users avoided late fees by paying only the minimum amount due. However, SBI is set to change how this amount is calculated. Starting July 15, the minimum payment due will include GST, EMIs, fees, other charges, and 2% of the remaining outstanding amount.
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This means cardholders will have to pay a higher minimum amount each month. Failing to do so could lead to accumulating interest and increased outstanding balances, making credit card usage costlier.
Payment Adjustment Order Modified
The way SBI adjusts payments is also changing. Beginning July 15, any amount paid towards the credit card bill will be adjusted in the following order:
- GST
- EMIs
- Fees and charges
- Finance charges
- Balance transfer dues
- Retail purchases and cash withdrawals
This means that interest and charges will be paid first before any principal amounts like shopping expenses or cash advances. As a result, users making partial payments may continue to incur heavy interest charges.
Complimentary Insurance Benefit to Be Withdrawn from August 11
Starting August 11, 2025, SBI Cards will also withdraw the complimentary air accident insurance coverage on select credit cards. Currently, this insurance covers Rs 50 lakh to Rs 1 crore, depending on the card type.
The cards affected include:
- UCO Bank SBI Card ELITE
- Central Bank of India SBI Card ELITE
- PSB SBI Card ELITE
- KVB SBI Card ELITE
- KVB SBI Signature Card
- Allahabad Bank SBI Card ELITE
- UCO Bank SBI Card PRIME
- Central Bank of India SBI Card PRIME
- PSB SBI Card PRIME
- South Indian Bank SBI Card PRIME
- Karnataka Bank SBI Card PRIME
Important Advice for Cardholders
SBI has advised all cardholders to carefully read the terms and conditions while applying for or using a credit card. Stay updated on any notifications from the bank to avoid surprises like increased interest or withdrawn benefits.
Ignoring such changes may lead to unplanned financial burden, especially in the form of higher EMIs, charges, or lost insurance cover.
