Starting July 15, 2025, State Bank of India (SBI) is implementing significant changes to its credit card policies, impacting millions of cardholders. These revisions include adjustments to the minimum amount due calculation, a revamped order of payment settlement, and the discontinuation of complimentary air accident insurance on several SBI and co-branded credit cards. These changes are designed to ensure financial stability and encourage responsible card usage.

One of the most notable changes is the withdrawal of complimentary air accident insurance coverage. Effective July 15, 2025, the ₹1 crore coverage currently offered on premium cards such as SBI Card Elite, SBI Card Miles Elite, and SBI Card Miles Prime will be discontinued. Similarly, the ₹50 lakh complimentary air accident insurance on SBI Card Prime and SBI Card Pulse will also be withdrawn on the same date.

This change extends to co-branded cards as well. From August 11, 2025, the ₹1 crore air accident cover will be discontinued on cards like 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. Additionally, insurance benefits of up to ₹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.

SBI Card is also revising the calculation of the Minimum Amount Due (MAD) starting July 15, 2025. The new formula will include: 100% of GST, 100% of EMI amounts, 100% of fees and charges, 100% of finance charges, any over-limit amounts, plus an additional 2% of the remaining outstanding balance. This new framework aims to ensure timely and more efficient payments, encouraging consumers to use their credit cards more responsibly.

The order in which payments are settled will also change from July 15, 2025. Payments will be adjusted in the following order: GST, EMIs, Fees/charges, Finance charges, Balance transfers, Retail purchases, and Cash advances. This impacts how interest is charged and how quickly cardholders can reduce their costliest debts.

These policy changes will have a direct impact on millions of SBI credit cardholders. While the termination of insurance cover may reduce security for some, the stricter payment terms are expected to promote greater financial discipline. Cardholders are advised to review their card benefits and consider alternative insurance plans if necessary. By understanding these changes, cardholders can better manage their finances and use their credit cards responsibly.