SBI Credit Card Rules Changing from July 15: Higher Minimum Dues & Insurance Withdrawal – Here’s What You Must Know

If you use an SBI Credit Card, some significant changes are around the corner that you shouldn’t ignore. Beginning July 15, 2025, SBI Cards—the credit card arm of State Bank of India—is updating its credit card policies. These updates will directly impact how your Minimum Amount Due (MAD) is calculated and also bring the end of complimentary insurance benefits on several premium credit cards.

Minimum Amount Due (MAD) to Increase from July 15

One of the major updates SBI Card is rolling out is a revised formula for calculating the Minimum Amount Due. The MAD is the smallest portion of your credit card bill that you need to pay each month to avoid default, though interest still applies to the remaining balance if you don’t clear it in full.

Starting July 15, the MAD will no longer be a simple percentage of your bill. It will now include several fixed components, leading to a possible spike in the amount you owe as MAD.

Here’s the New MAD Structure:

• 100% of GST charges
• 100% of any EMIs you have on your card
• 100% of fees and charges
• 100% of finance charges
• Any over-limit amount, if your usage has exceeded your card limit

2% of the remaining outstanding balance

This revised method could noticeably raise your MAD. For instance, a bill that previously had a MAD of ₹17,313 could now reflect a minimum due of around ₹20,013, as per examples shared by SBI Card.

How Will Your Payment Be Applied?

SBI Card will allocate your payments in the following order:

1. GST

2. EMI

3. Fees and Charges

4. Finance Charges

5. Balance transfer, retail spends, and cash advances

So, if you’re someone who usually pays just the minimum amount, it’s important to be prepared for a higher monthly obligation. And remember, paying only the MAD still means you’ll be charged interest on the unpaid portion. To avoid extra charges and maintain a healthy credit score, it’s best to pay off your total outstanding amount every month.

Complimentary Insurance Cover to be Discontinued

Alongside the MAD revisions, SBI Card is also discontinuing free air accident insurance coverage that was previously offered with several of its premium cards. This change also comes into effect from July 15, 2025.

Here’s What’s Being Withdrawn:

₹1 crore air accident insurance will no longer be offered on:

• SBI Card ELITE
• SBI Card Miles ELITE
• SBI Card Miles PRIME

₹50 lakh air accident insurance cover will be discontinued from:

• SBI Card PRIME
• SBI Card PULSE
• But the changes don’t stop there.

More Cards Affected from August 11, 2025:

Even co-branded SBI Cards will see a rollback of complimentary insurance benefits from August 11, 2025. The following cards will no longer provide accident insurance:

• ₹1 crore coverage withdrawn from:
• UCO Bank SBI Card ELITE
• Central Bank of India SBI Card ELITE

₹50 lakh coverage removed from:

• UCO Bank SBI Card PRIME
• Central Bank of India SBI Card PRIME
• Karnataka Bank SBI Platinum Card
• Federal Bank SBI Platinum Card

What Should SBI Cardholders Do Now?

With these updates, it becomes more important than ever for SBI credit card users to revisit their monthly budgets and spending habits. If you tend to pay just the MAD each month, brace yourself for higher minimum payment obligations. And if you’ve relied on the complimentary insurance coverage, it may be time to explore personal insurance plans to maintain your protection.

These changes are part of SBI Card’s broader strategy to manage credit risk and financial sustainability. But as a user, staying informed and adjusting your payment habits will help you avoid unexpected charges, interest accumulation, or credit score dips.