Key Points:
- SBI Card and HDFC Bank to discontinue complimentary air accident insurance on select credit cards from July and August 2025.
- New and increased transaction fees introduced for wallet loads, gaming, rent, and utility bill payments.
- Reward point caps and exclusions to impact high-value and specific-category spenders.
- Changes affect both premium and co-branded cards; other banks likely to follow suit.
- Cardholders urged to review new terms to avoid unexpected charges and benefit losses.
New Delhi: State Bank of India (SBI) Card will implement significant changes for its credit cardholders starting July 15, 2025:
- Discontinuation of Complimentary Air Accident Insurance:
- The Rs 1 crore air accident insurance on premium cards such as SBI Card Elite, Miles Elite, and Miles Prime will be withdrawn from July 15, 2025.
- The Rs 50 lakh cover on SBI Card Prime and Pulse will also end on the same date.
- From August 11, 2025, several co-branded cards (including UCO Bank SBI Card Elite, Central Bank of India SBI Card Elite, KVB SBI Card Elite, Allahabad Bank SBI Card Elite, and others) will also lose this benefit.
- No Replacement Benefit: SBI Card has not announced any substitute for the withdrawn insurance. Cardholders are advised to consider standalone travel insurance for continued protection.
- Billing and Payment Rule Changes:
- The Minimum Amount Due (MAD) formula will now include the full GST, EMIs, fees, finance charges, and 2% of the remaining unpaid balance, potentially increasing the minimum payment required each month.
- The order of payment settlement will be revised: payments will be applied first to GST, then EMIs, fees, finance charges, balance transfers, retail spends, and finally cash advances.
HDFC Bank: New Transaction Charges and Reward Point Caps Effective July 1
From July 1, 2025, HDFC Bank will introduce a host of changes impacting how customers spend and earn rewards on their credit cards:
- 1% Fee on Select Transactions (Capped at Rs 4,999 per month):
- Wallet Loads: Loading more than Rs 10,000/month into third-party wallets (Paytm, Mobikwik, Freecharge, Ola Money) will attract a 1% fee.
- Online Skill-Based Gaming: Monthly spends above Rs 10,000 on platforms like Dream11, Rummy Culture, MPL, and similar will incur a 1% fee; no reward points will be earned on these transactions.
- Utility Bill Payments: Expenditure above Rs 50,000/month (consumer cards) or Rs 75,000/month (business cards) will also attract a 1% charge.
- Rent, Fuel, and Education Payments: Existing 1% fee continues, but now capped at Rs 4,999 per transaction; applies to third-party payments and high-value transactions.
- Reward Point Revisions:
- Insurance Payments: Reward points on insurance premium spends will be capped monthly: 10,000 for Infinia, 5,000 for Diners Black, and 2,000 for most other cards. Marriott Bonvoy cards are exempt from this cap.
- No Points on Gaming: Online gaming spends will no longer earn reward points.
- Other Notable Changes:
- Lounge Access: For Tata Neu Infinity and Plus cards, lounge access will now require meeting quarterly spending milestones instead of just card swipes.
Industry-Wide Impact: Other Banks Likely to Follow
- Kotak Mahindra Bank and other major issuers are also revising credit card terms, including product migrations and new fees on wallet, utility, fuel, and gaming spends.
- Experts anticipate that additional banks will soon update their credit card fee structures and benefit policies, reflecting a broader industry trend toward tightening rewards and increasing charges on high-value or high-risk transactions.
What Should Cardholders Do?
- Review your card’s updated terms and conditions before July 2025 to avoid surprise charges or loss of key benefits.
- Consider alternative insurance options if you relied on complimentary air accident cover, especially frequent travelers.
- Monitor your monthly spending in high-fee categories (wallet loads, gaming, utilities, rent) to minimize extra costs.
- Reassess your rewards strategy as caps and exclusions may affect the value you get from your card.
Stay informed and adjust your spending habits to make the most of your credit card benefits while avoiding unnecessary fees as these new rules take effect across India’s leading banks.
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