Key Changes To SBI Card Users From July 15: From MAD Calculation To Removal Of Air Accident Insurance

SBI Card has announced a slew of changes for its credit card holders related to the credit repayment facility and availability of additional features. SBI Card users may see a surge in their minimum amount due calculation (MAD), a change in the order of payment settlement, removal of air accident cover insurance, and more starting from Tuesday, July 15.

According to SBI Card's official website, these adjustments will affect the calculation of the minimum amount due (MAD), the order of payment settlements, and the insurance perks that cardholders currently enjoy. Here are all the details related to changes for SBI credit card users coming into effect from today.

Change in MAD calculation

SBI Card has introduced a new formula for calculating the MAD on its credit cards. The new system came into effect on July 15. This updated method will encompass 100% of GST, EMIs, fees, finance charges, any over-limit amounts, and 2% of the remaining outstanding balance. Consequently, customers must pay a larger sum to remain current on their dues.

What is MAD?

The minimum amount due (MAD) on a credit card is the smallest amount that the creditors nneedto pay to ensure that their account remains in good standing position. It is also important for them to pay MAD on time to avoid late fees. Generally, MAD remains around 5% of the total outstanding balance.

SBI Card Payment Settlement Order Update

SBI Card has also revised the order of payment settlement. As per the revised order, payments will now first cover GST, followed by EMIs, fees, finance charges, balance transfers, retail expenses, and lastly cash advances. This means any pending interest or charge will be settled before addressing actual spending amounts.

Higher Overall Dues for Missing Out On Balance Payment

This change implies that if there are unpaid principal amounts, interest could continue to accumulate. As a result, cardholders might face higher overall dues if they do not pay off their balances in full.

Removal of Air Accident Coverage

SBI Card has also notified of removing the complimentary benefit of air accident insurance coverage for its users in a phase-wise manner. Multiple variants and categories of SBI credit cards won't offer the feature anymore from July 15.

From today onwards, the complimentary air accident insurance coverage of Rs 1 crore currently offered to SBI Card Elite, SBI Card Miles Elite, SBI Card Miles Prime, SBI Card Prime, and SBI Card Pulse members will be discontinued.

Starting from 11 August 2025, this benefit will be phased out on other credit cards offered by SBI Card. The Rs 1 crore cover will no longer be available for specific cards such as UCO Bank, SBI Card ELITE and others. Similarly, a Rs 50 lakh cover will be withdrawn from various other SBI cards, including UCO Bank SBI Card PRIME and others.

This change affects a wide range of cards across different banks affiliated with SBI Card. As the new changes have come into effect from today, existing SBI Credit Card holders must thoroughly examine the revised changes by visiting the official website of SBI Card. Reviewing these changes would also help them to plan their card usage accordingly.