Nowadays, credit cards are rapidly increasing their reach among the common people on the basis of their great facilities. In the absence of cash, you can not only do shopping with a credit card, but also book travel, eat in hotels, and make payments at many other places. Not only this, users also get tremendous cashback and reward points on the use of credit cards.
This is the reason why the use of credit cards is continuously increasing in the country. But, if you use an SBI Credit Card, then there is important news for you. SBI Card is going to make some big changes, which will have a direct impact on you. Come, let’s know what are these new rules and what effect will they have on your pocket from July 15.
Free air accident insurance of ₹ 1 crore will no longer be available
SBI Card, a subsidiary of State Bank of India, has issued an important notice for its customers. SBI Card is going to implement some new rules for its cardholders, which will be effective from July 15, 2025. The biggest shock in these changes is going to be those premium cardholders, who till now used to get complimentary air accident insurance cover of up to ₹ 1 crore.
Which cards will be affected
According to the company, the complimentary air accident insurance cover of ₹ 1 crore available on SBI Card Elite, SBI Card Miles, and SBI Card Miles Prime will be discontinued from July 15. Apart from this, the complimentary air accident insurance cover of ₹ 50 lakh available on SBI Card Prime and SBI Card Pulse will also be discontinued from July 15, 2025. Let us tell you that SBI Card used to provide this free insurance facility on its premium cards, which is now ending. This is a big change for those who rely on this insurance cover.
The rule of Minimum Amount Due (MAD) calculation will change
Not only insurance coverage, SBI Card has also announced changes in the rule of calculation of Minimum Amount Due (MAD). This change will also come into effect from July 15, 2025.
New MAD Formula
Under the new rules, these things will be included in the calculation of MAD in the billing cycle:
100% GST:- 100% of your total GST amount.
100% EMI amount:- If any EMI is due, then it is the full amount.
100% Fees/Charges:- 100% of all fees (such as late payment fee, overlimit fee, etc.).
100% Finance Charges:- 100% of all finance charges levied.
Overlimit Amount (if any):- The entire amount you have spent over your credit limit.
2% of Outstanding Amount:- 2% of your total outstanding balance.
What does it mean
This change is important for you as it may increase your minimum due amount. If you pay only the minimum amount, your outstanding amount may attract higher interest, which may increase your total debt.
How will these changes affect you and how to prepare
These new rules of SBI Card can be a matter of concern for some credit card users. If you were relying on the free insurance you get on your credit card for air travel, you will now have to consider buying separate travel insurance or air accident insurance for your trip. This is very important for your safety. Understand the new MAD calculation rule carefully.
Always try not to pay only the minimum due amount, but pay the full outstanding amount. This can help you avoid heavy finance charges and also keep your credit score better. Check your credit card statement regularly and ensure that all charges and calculations are correct. If you have any doubts or questions about these changes, do not hesitate to contact your SBI Card Customer Care.