SBI Card Major Policy Update: In a significant shift affecting lakhs of SBI credit cardholders, SBI Card has announced crucial changes to its credit card policies, effective from July 15, 2025. These updates mark the discontinuation of complimentary air accident insurance for several premium and co-branded cards, along with a revamped structure for minimum due payments. The move has stirred attention across the banking and personal finance ecosystem, as customers seek clarity on the implications for their travel protection and financial planning.
Under the revised policy, SBI Card will withdraw the ₹1 crore air accident insurance benefit from prominent offerings such as the SBI Card ELITE, SBI Card Miles ELITE, and SBI Card Miles Prime. Similarly, the ₹50 lakh insurance benefit available on SBI Card Prime and SBI Card Pulse will also cease to exist. This means that from July 15, 2025, cardholders will no longer be eligible for these previously complimentary insurance covers that were marketed as exclusive value-added features of premium credit cards.
Adding to this, SBI Card has overhauled how minimum dues will be calculated and how payments made by cardholders will be allocated across outstanding balances. These changes are expected to influence how interest is charged on revolving balances and how efficiently customers can manage their repayments. With SBI Card being one of India’s largest credit card issuers, these changes are set to impact a wide customer base.
Policy Highlights: What’s Changing from July 15, 2025
1. Air Accident Insurance Withdrawal
- SBI Card ELITE, Miles ELITE & Miles Prime: ₹1 crore insurance discontinued.
- SBI Card Prime & SBI Card Pulse: ₹50 lakh insurance withdrawn.
- UCO Bank SBI Card ELITE & Central Bank SBI Card ELITE: ₹1 crore coverage discontinued from August 11, 2025.
2. Revised Minimum Due Payment Calculation
SBI Card will revise how the minimum due amount is calculated on outstanding balances. The new structure will aim to provide more clarity on repayment obligations, though customers might see slightly higher minimum amounts due each billing cycle.
3. Updated Payment Allocation Hierarchy
Payments made toward your SBI Card bill will be allocated differently, prioritizing EMIs, interest, fees, and principal components. This change can directly affect how much interest a user ends up paying if they revolve credit.
Who Can Apply for SBI Credit Cards?
Anyone who meets the following criteria can apply for an SBI credit card:
- Age: Must be at least 21 years old (for primary cardholder).
- Income: Should meet the minimum income criteria for the specific card.
- Credit Score: A CIBIL score of 700+ is generally preferred.
- Residency: Should be a resident Indian with valid documents.
These criteria apply to all SBI credit cards, including those impacted by the recent policy updates.
Air Accident Insurance Fees & Benefits (Until Discontinuation)
While the benefit was previously complimentary, here’s how it worked until the termination dates:
| Card Variant | Insurance Cover | Fee for Benefit | Valid Until |
|---|---|---|---|
| SBI Card ELITE | ₹1 Crore | Free | July 15, 2025 |
| SBI Card Prime | ₹50 Lakh | Free | July 15, 2025 |
| UCO Bank SBI ELITE | ₹1 Crore | Free | August 11, 2025 |
How to Use the Benefit (Before Termination)
- In case of an air accident death, the nominee could claim the insurance by submitting the required documents.
- The flight ticket must be purchased using the respective SBI credit card to be eligible.
- Claims were handled by partnered insurance firms via SBI Card’s backend.
How to Apply for SBI Credit Cards
Applying for an SBI credit card is easy and fully online:
Steps to Apply Online:
- Visit the official SBI Card website: https://www.sbicard.com
- Choose a card that suits your lifestyle and spending pattern.
- Click on “Apply Now” and fill in your personal, financial, and contact details.
- Upload necessary documents: PAN, Aadhaar, income proof.
- Submit the application and track the status via OTP.
Alternatively, you can apply through partner banks or third-party platforms like BankBazaar, Paisabazaar, or Cred.
Important Dates to Remember
| Event | Date |
|---|---|
| Air Accident Insurance Discontinuation (SBI ELITE & Prime Series) | July 15, 2025 |
| Discontinuation on Co-branded SBI ELITE Cards | August 11, 2025 |
| New Minimum Due Payment Rules in Effect | July 15, 2025 |
Disclaimer
This article is for informational purposes only. SBI Card reserves the right to modify or withdraw any benefits or features at its sole discretion. Readers are advised to verify the latest information from the official SBI Card website or customer service.
SBI Card Major Policy Update Conclusion
The withdrawal of complimentary air accident insurance on several SBI credit cards marks a major shift in the value proposition of premium credit cards in India. Customers who once relied on these perks for travel security will now need to explore alternate insurance options or upgrade their financial protection via standalone insurance products.
From a financial planning perspective, the updated minimum due calculation and payment allocation structure could lead to higher interest costs if cardholders continue to revolve balances. Therefore, it becomes essential to understand the new repayment structure and ensure timely full payments to avoid penalties.
Existing SBI Card users must revisit their card usage strategy, especially if they had considered air insurance as a key benefit. Comparing alternate cards or checking for add-on paid insurance products could be a prudent step.
Overall, these changes highlight a broader industry trend: cards are evolving to become more usage-focused than benefit-driven, and users must adapt by staying informed and proactive.
SBI Card Major Policy Update FAQs
1. Why is SBI Card discontinuing air accident insurance?
SBI Card has not publicly stated a specific reason, but this decision may align with cost optimization strategies or a shift in product value structures. As the financial ecosystem evolves, many card issuers are revamping their perks to balance risk, compliance, and operational cost.
2. Will I still be covered for air accidents if I use my SBI card for flight booking after July 15, 2025?
No. Even if the flight ticket is booked using an eligible SBI card, the air accident insurance coverage will not apply after the effective discontinuation date. Users should consider purchasing separate travel insurance for such protection.
3. What changes are happening in the minimum due payment structure?
From July 15, 2025, SBI Card will implement a revised method of calculating the minimum due amount. This could include more dynamic calculations based on total outstanding, EMIs, fees, and revolving credit. It’s essential to read your monthly statement thoroughly to understand your obligations.
4. Do these changes affect all SBI credit cardholders?
No, these changes specifically impact holders of SBI Card ELITE, Miles ELITE, Miles Prime, Prime, Pulse, and select co-branded cards like UCO Bank ELITE and Central Bank ELITE. Basic cards and other mid-range offerings may not be affected by the insurance withdrawal.
5. How can I ensure I still have air accident coverage when flying?
You can purchase standalone air accident or travel insurance policies from reputed insurers like ICICI Lombard, HDFC ERGO, or Tata AIG. These policies are customizable and often offer better coverage for frequent flyers than credit card-linked benefits.
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