SBI Card To Introduce Major Changes From 15 July: Removal Of Insurance Cover To Higher Minimum Amount Due

State Bank of India Card (SBI Card) is set to bring multiple changes in its policies for its credit card holders including removal of accident insurance cover, revision in minimum amount due (MAD) calculation, etc. These SBI Card rules will come into effect from 15 July, 2025.

From 15 July onwards, SBI Card holders will face 2% additional charges on remaining outstanding balance. Some of the credit card holders may not receive complimentary air accident insurance coverage of Rs 1 crore, according to SBI Card's official website. Here are the major changes announced by SBI Card for its credit card holders.

SBI Card Revises MAD Calculation: What Is It?

MAD is the minimum amount which a credit card holder is required to repay by the due date of the billing cycle of the credit card to stay safe from default. With the revised MAD calculation, SBI Card credit card holders are likely to pay higher MAD amount for their outstanding debts.

SBI Card Revises MAD Calculation: What Is It?

The revised MAD calculation now includes full settlement of finance charges and fees each month. From 15 July onwards, card holders will be charged an additional 2% of their remaining outstanding amount in the MAD.

SBI Card MAD Calculation

"W.e.f. 15 Jul'25, Minimum Amount Due (MAD) calculation will be as follows: 100% of GST + 100% of EMI amount + 100% of Fees/Charges + 100% of finance charges + Overlimit Amount (if any) + 2% of remaining balance outstanding," read SBI Card's official notification.

SBI Card Revised Payment Allocation

After the deadline, payment allocation sequence will be re-adjusted. As per the revised sequence, payments will cover GST, followed by EMIs, fees and charges, finance charges, balance transfer amounts, retail spends, and finally cash advances. This new order aims to streamline the payment process for cardholders.

"W.e.f. 15 Jul'25, the Order of Payment Settlement will be as follows: Payment received against the Cardholder's outstanding will be adjusted against 100% of GST, 100% of EMI amount, 100% of Fees/Charges, 100% of Finance charges, Balance transfer, Retail Spends and Cash Advance, in that order," read a notice for SBI Card credit card holders.

SBI Card Insurance Benefits Withdrawal

SBI Card will withdraw insurance benefits on certain categories of SBI Card including SBI Card Elite, SBI Card Miles Elite, SBI Card Miles Prime, SBI Card Prime, SBI Card Pulse, UCO Bank SBI Card ELITE, Central Bank of India SBI Card ELITE, PSB SBI Card ELITE, KVB SBI Card ELITE, KVB SBI Signature Card and Allahabad Bank SBI Card ELITE, etc.

The Rs 1 crore air accident cover provided with SBI Card ELITE, SBI Card PULSE, and SBI Card MILES ELITE will no longer be available. Similarly, the Rs 50 lakh cover on SBI Card PRIME and SBI Card MILES PRIME is also being withdrawn.

Most of the air accident insurance coverages on SBI Card's credit cards will be removed from 15 July. The coverage will also be removed from multiple other categories of SBI Card from 11 August. The company has also announced to discontinue Yatra SBI Credit Card from March 2025.