Starting July 15, 2025, SBI credit cardholders will face significant changes in billing and benefits. The Minimum Amount Due (MAD) formula is being revised. The new MAD will now include 100% of GST, EMIs, all fees and finance charges, any over-limit amount, plus 2% of the remaining outstanding balance. This change will substantially increase the minimum payable each month and help reduce long-term debt, but may put pressure on short-term budgets.
Additionally, the payment allocation order is being restructured. Payments will be first applied to GST, then EMIs, fees, and finance charges — only after these are cleared will they be applied to regular purchases or cash withdrawals. This can result in continued interest accumulation on retail spends unless the full balance is paid.
Another major change: SBI is discontinuing complimentary air accident insurance, previously ranging from ₹50 lakh to ₹1 crore on several cards like SBI PRIME, ELITE, IRCTC, and co-branded cards with partner banks. These benefits will end on July 15 (August 11 for partner-bank cards).
Cardholders are advised to review their card benefits and consider upgrading or switching if needed. Staying informed will help avoid hidden charges and optimize card usage.
From July 15, 2025, SBI Card is implementing major changes that will affect how cardholders manage their bills and benefits. The revised Minimum Amount Due (MAD) will now cover 100% of GST, EMI payments, fees, finance charges, any overlimit amounts, and 2% of the remaining balance—resulting in a significantly higher monthly obligation.
Moreover, a new payment hierarchy means that all incoming payments will first be applied to GST, EMIs, and charges before addressing regular purchases or cash advances. This could result in retail spends continuing to attract interest unless the full balance is paid.
SBI is also removing free air accident insurance, which was previously provided on cards such as SBI PRIME, ELITE, IRCTC SBI Cards, and partner-bank cards from UCO, Central Bank, PSB, and others.
Cardholders should evaluate whether their current SBI card continues to meet their needs and explore other options if necessary. Proactive management can help reduce costs and avoid unexpected interest or benefit losses.
