SBI Credit Card Holders: The most important of these changes is the abolition of Air Accident Insurance, changes in the rules of payment settlement and new calculation of Minimum Amount Due (MAD).
SBI Credit Card Holders: If you are an SBI Credit Card user then this news is very important for you. SBI Card has announced many big changes for its customers, which will come into effect from July 15, 2025. These changes will have a direct impact on premium card holders and those who shop on EMI.
The most important of these changes is the abolition of Air Accident Insurance, changes in the rules of payment settlement and new calculation of Minimum Amount Due (MAD). Let us know about all these changes in detail.
1- Will not get air insurance cover of ₹ 1 crore
The free air accident insurance of ₹ 1 crore available on premium cards like SBI Card Elite, SBI Card Miles Elite and SBI Card Miles Prime will now be discontinued. From July 15, 2025, users of these cards will not get this facility.
2- Now the cover of ₹ 50 lakh will also end
SBI Card Prime and SBI Card Pulse users were being given free air accident insurance of ₹ 50 lakh till now. Now this is also being discontinued by the company. That is, from July 15, 2025, these cardholders will also not get this benefit.
3- Changed method of payment settlement
SBI Card has also changed the order of payment settlement i.e. how the payment will be adjusted in which parts. Now the payment made by you will first be adjusted in GST, then EMI, then other charges, then finance charge, then balance transfer, then retail expenses and finally cash withdrawal.
4- Change in calculation of MAD
Changes have also been made in the calculation of MAD i.e. Minimum Amount Due of SBI Credit Card. Now MAD will include 100% GST + 100% EMI + 100% other charges + 100% finance charge + if there is an overlimit then that entire amount + 2% of the remaining amount. This means that those cardholders who used to pay the minimum amount due will now have to pay more to avoid default.
It is clear from these changes that SBI Card now wants to make its credit card portfolio more financially strong and transparent. In such a situation, card users will have to manage their expenses, payments and limits properly. Keep in mind, even a small negligence regarding credit card can become the cause of big problem and can trap you in the debt trap.
