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Starting July 15, 2025, State Bank of India (SBI) Card is implementing several significant changes that will directly affect credit card users. If you own an SBI Elite, Prime, Pulse, IRCTC, or any other co-branded card issued by SBI in partnership with banks like UCO Bank, Karur Vysya Bank (KVB), or Punjab & Sind Bank (PSB), it’s important to stay informed. These changes may impact your payment obligations, financial planning, and overall credit card benefits.

Here's a detailed breakdown of the upcoming changes, their implications, and what you should do as a cardholder.

Key Changes Effective from July 15, 2025

1. Stricter Calculation of Minimum Amount Due (MAD)

SBI Card will now adopt a more stringent method to calculate the Minimum Amount Due on your credit card bill. This recalculation will include:

• EMI amounts

• Goods and Services Tax (GST)

• All types of fees and charges

• Finance charges

• Amounts exceeding the card limit

• 2% of the total outstanding balance

This means your Minimum Amount Due may be significantly higher than before, increasing the pressure to pay more each billing cycle. Failing to do so could lead to higher interest charges and a potential drop in your credit score.

2. Revised Payment Allocation Order

Another major update is the way your payments will be allocated. Beginning July 15, SBI Card will prioritize payments in the following order:

1. GST

2. EMIs

3. Charges and fees

4. Finance charges (interest)

5. Balance transfers

6. Retail purchases

7. Cash advances

This updated payment structure could result in increased interest liabilities, especially if your earlier dues (like EMIs or charges) remain unpaid. The new sequence prioritizes statutory and high-cost items first, which may lead to your regular purchases accumulating interest if not cleared in full.

3. Air Accident Insurance Cover to Be Discontinued

Effective August 11, 2025, SBI Card will discontinue the complimentary air accident insurance cover ranging from ₹50 lakh to ₹1 crore on several co-branded credit cards. This benefit was previously offered in collaboration with partner banks such as UCO Bank, KVB, and PSB.

If you relied on this insurance as part of your travel safety net, you’ll now need to look for alternate coverage options.

What Should Cardholders Do Now?

To manage these changes effectively and avoid unnecessary fees or interest, cardholders should take the following steps:

✅ Review Updated Terms and Conditions: Log into your SBI Card account or visit www.sbicard.com to review the detailed terms applicable to your specific card.

✅ Pay More Than Just the Minimum: Always aim to pay more than the Minimum Amount Due to avoid hefty finance charges and to maintain a healthy credit score.

✅ Understand the New Payment Hierarchy: Familiarize yourself with the revised payment settlement order so you know how your payments are being adjusted.

✅ Evaluate Your Card Benefits: If your current card no longer serves your needs—especially with removed insurance perks or revised terms—it may be time to consider upgrading or switching to a more suitable credit card.

✅ Contact Customer Support: If you have questions or need clarification, contact the SBI Card customer care service for guidance on how these changes apply to your account.

Final Thoughts

These updates reflect a broader trend among credit card issuers toward stricter compliance, better transparency, and improved risk management. For users, it reinforces the importance of staying informed and proactive. Whether it’s a change in how payments are handled or the loss of complimentary benefits, knowing how these adjustments affect your finances is key to making smart credit decisions.

Stay alert, review your statements regularly, and take action where needed to ensure that your credit card continues to serve as a financial tool—not a burden.