These changes of SBI Card will have a direct impact on millions of cardholders. While on the one hand the termination of insurance cover will reduce security, on the other hand, strict payment terms will force users to adopt more financial discipline.
SBI Card, a subsidiary of State Bank of India (SBI), has announced policy changes for its credit card customers, which will come into effect from July 15, 2025. These changes will affect the insurance protection and payment terms. According to SBI Card, this decision has been taken keeping in mind the risk associated with the card and financial stability.
Air accident insurance benefits ended
According to the information released by SBI Card, the complimentary air plane accident of Rs 1 crore available on premium cards like SBI Card ELITE, SBI Card Miles ELITE and SBI Card Miles Prime will be discontinued from July 15, 2025. Similarly, the free insurance cover of up to Rs 50 lakh available on SBI Card PRIME and SBI Card PULSE is also being discontinued.
Impact on co-branded cards too
This change is not limited to SBI’s main cards only. From August 11, 2025, air accident cover of up to Rs 1 crore will also be discontinued on co-branded credit cards like UCO Bank SBI Card ELITE and Central Bank of India SBI Card ELITE.
Apart from this, insurance benefits up to Rs 50 lakh will be removed from cards like UCO Bank SBI Card PRIME, Central Bank of India SBI Card PRIME, Karnataka Bank SBI Platinum Card, and Federal Bank SBI Platinum Card.
Change in Minimum Due Amount (MAD)
SBI Card has also changed the rules for calculating the minimum due amount. As per the new formula to be implemented from July 15, 2025, now MAD will include.
- 100% GST
- All EMI dues
- Finance charges and other charges
- Overlimit amount
And additional 2% of the remaining outstanding amount
This new framework aims to ensure timely and more efficient payments, so that consumers use their credit cards more responsibly. These changes of SBI Card will directly impact millions of cardholders. While on the one hand the end of insurance cover will reduce protection, on the other hand, strict payment terms will force consumers to adopt more financial discipline. Users are advised to review their card benefits in time and adopt alternative insurance plans if needed.
