State Bank of India (SBI) credit card users will soon experience significant changes that affect how payments are structured and how benefits are applied. Beginning July 15, 2025, several updates will come into effect, ranging from minimum dues recalculations to the end of complimentary air accident insurance on select cards.
Higher Minimum Amount Due (MAD)
The biggest change for SBI cardholders is the revised Minimum Amount Due (MAD). Starting July 15, the MAD will now include:
- 100% of Goods and Services Tax (GST)
- All EMIs
- Finance charges and any overlimit charges
- Other charges applicable
- 2% of the remaining unpaid balance
This change will increase the monthly payment burden, especially for those who carry forward balances. Missing the new MAD could lead to higher interest rates and accumulating debt faster than before.
The order in which payments are adjusted is also changing. From July 15, all incoming payments will be applied in the following sequence:
- GST
- EMIs
- Charges and finance fees
- Retail purchases or cash withdrawals
This means partial payments will mostly cover interest and charges first, leaving principal amounts unpaid. As a result, interest will continue to accrue on retail spends and ATM withdrawals until the full balance is cleared.
Air Accident Insurance Benefit Ends
In a move that could impact frequent flyers, SBI is withdrawing free air accident insurance from several of its credit cards starting August 11, 2025. This benefit previously offered coverage ranging between ₹50 lakh to ₹1 crore.
Popular co-branded cards issued with UCO Bank, Central Bank of India, and others will be affected. Cardholders should verify whether their card falls under this category to avoid unexpected loss of protection.
What Should Cardholders Do Now?
To manage these changes effectively, SBI credit cardholders should:
- Review their card features and benefits to see if they still meet current needs.
- Consider upgrading, switching, or cancelling cards that no longer provide value.
- Pay more than just the minimum amount due to reduce interest accumulation.
- Monitor monthly statements for any new charges or exclusions.
Additionally, customers should be cautious with EMIs and overlimit spends, as they now significantly affect the MAD and interest computations.
Why This Matters
The new rules signal a broader shift towards more disciplined and structured credit usage. While the bank ensures better recovery of dues, cardholders must respond by managing their credit more responsibly.
Those unaware of these updates may see sudden jumps in outstanding balances or face loss of benefits without notice. Hence, awareness and financial planning are more crucial than ever.
Conclusion
From July 15, SBI credit card users must adapt to a stricter financial regime. While the new payment rules and insurance policy withdrawal may seem restrictive, they highlight the need for financial literacy and smart credit usage.
As always, staying informed can help avoid penalties and get the most from your financial tools. To explore better card alternatives or tips on managing credit wisely, visit our Personal Finance section.