SBI Credit Card Update: Key Changes from 15 July 2025

If you're an SBI card user, get ready for some major updates coming your way! Starting 15 July 2025, SBI will implement significant changes to its credit card benefits and billing structure. This overhaul includes a new approach to calculating the Minimum Amount Due (MAD) and the discontinuation of complimentary air accident insurance on several popular card variants. These adjustments will not only affect how you manage your payments but also impact the value-added benefits you receive. In this blog, we'll dive deeper into these changes and what they mean for you as a credit cardholder.

Table of Contents

• Discontinuation of Complimentary Air Accident Insurance
• Revised Calculation for Minimum Amount Due (MAD)
• Understanding the New Payment Settlement Order
• Impact on SBI Cardholders
• What Should You Do?

Discontinuation of Complimentary Air Accident Insurance

One of the most notable changes is the withdrawal of complimentary air accident insurance, a key feature for many premium cardholders.

Effective 15 July 2025, this benefit will be discontinued for the following cards:

• SBI Card ELITE
• SBI Card Miles ELITE
• SBI Card Miles PRIME
• SBI Card PRIME
• SBI Card PULSE 

This change means that in the unfortunate event of an air accident, cardholders of these variants will no longer have the financial protection that was previously offered as a perk.

Revised Calculation for Minimum Amount Due (MAD)

SBI Card is also altering the formula used to calculate the Minimum Amount Due (MAD) on your monthly statement. This change will likely result in a higher MAD for many users, particularly those who have availed of EMI plans or carry a balance.

The new MAD calculation, effective 15 July 2025, will be the sum of:

• 100% of any Goods and Services Tax (GST) levied.
• 100% of the Equated Monthly Instalment (EMI) amount due for the month.
• 100% of all fees and charges.
• 100% of finance charges (interest).
• Any amount exceeding the credit limit (over-limit amount).
• 2% of the remaining outstanding balance.

Previously, the MAD calculation often included only a portion of these components. By including the full EMI amount and other charges, the minimum payment required to keep the account in good standing will increase.

Example: If a cardholder has a retail purchase balance, finance charges, and an active EMI plan, the new MAD will include the full EMI amount for that month, whereas the old system might have included only a fraction of it. This will necessitate higher monthly outlays for customers who only pay the minimum due.

Understanding the New Payment Settlement Order

In conjunction with the MAD changes, SBI has also revised the order in which your payments will be settled against outstanding dues.

From 15 July 2025, payments will be applied in the following sequence:

1. GST
2. EMI Amount
3. Fees and Charges
4. Finance Charges
5. Balance Transfers
6. Retail Spends
7. Cash Advances

This order of settlement can impact how interest is calculated on different types of outstanding balances.

Impact on SBI Cardholders

These changes have two primary implications for SBI credit card users:

• Increased Monthly Obligation for Minimum Payers: Those who are accustomed to paying only the minimum amount due will see this figure rise. This is intended to encourage faster repayment of debt and reduce the interest burden over the long term.
• Loss of a Valuable Perk: The removal of complimentary air accident insurance from premium cards diminishes their value proposition, especially for frequent flyers who relied on this benefit for travel security.

Also, check out the top SBI Credit Cards with detailed features and eligibility, only on Finology Select.

What Should You Do?

In light of these upcoming changes, SBI credit cardholders are advised to take the following steps:

• Review Your Statements: Carefully examine your credit card statements leading up to and after 15 July 2025, to understand how the new MAD calculation affects your monthly bill.
• Re-evaluate Your Budget: If you typically pay only the minimum amount, you will need to adjust your budget to accommodate the higher payment. It is always advisable to pay the total amount due to avoid high-interest charges.
• Seek Alternative Insurance: If you were dependent on the complimentary air accident insurance, it is crucial to explore and purchase a separate travel or personal accident insurance policy to ensure you remain protected.
• Reconsider Your Card Choice: If the withdrawn insurance was a primary reason for holding a particular SBI premium card, you may want to evaluate other credit cards in the market that offer similar benefits.

Conclusion

The upcoming changes to SBI credit cards from 15 July 2025 represent a significant shift in policy. While the revised Minimum Amount Due calculation is aimed at promoting better financial discipline among users, the discontinuation of complimentary air accident insurance on premium cards is a notable reduction in benefits. It is imperative for all SBI credit cardholders to be aware of these new rules and take proactive measures to manage their finances and insurance needs effectively.

Also read: Why SBI Card PRIME Air Accident Insurance is no longer part of your card benefits—and what alternatives you should now consider.

Frequently Asked Questions (FAQs)

Q1: When do these new SBI credit card rules come into effect?
A: All the new rules, including the changes to the Minimum Amount Due calculation and the discontinuation of air accident insurance, will be effective from 15 July 2025.

Q2: Which specific SBI credit cards will no longer have complimentary air accident insurance?
A: The complimentary air accident insurance benefit will be removed from the SBI Card ELITE, SBI Card PRIME, SBI Card PULSE, and SBI Card AURUM.

Q3: Why is my Minimum Amount Due (MAD) going to be higher?
A: Your MAD will likely be higher because SBI is changing the calculation to include 100% of your EMI dues, fees, and charges for the month, plus 5% of your remaining balance. This is a more comprehensive calculation than the previous method, leading to a larger minimum payment.

Q4: Does this mean I should always pay more than the minimum amount?
A: Yes. While the new MAD is higher, financial experts always recommend paying the total amount due on your credit card. Paying only the minimum results in high-interest charges on the remaining balance and can lead to a long cycle of debt.

Q5: What should I do for travel insurance now that my SBI Card won't provide it?
A: You should assess your travel needs and purchase a separate travel insurance or personal accident policy from a reputable insurance provider before you travel. Do not assume you are covered.

Q6: Are all SBI credit cardholders affected by these changes?
A: The change in the Minimum Amount Due (MAD) calculation will affect all SBI credit cardholders. The discontinuation of complimentary air accident insurance specifically impacts holders of the ELITE, PRIME, PULSE, and AURUM cards.