SBI Credit Card Rule Changes from July 15: No More Cashback and Reward Points on These Transactions

If you're an SBI credit cardholder, there's an important update you must not miss. Starting July 15, 2025, major changes are being introduced to the reward points and cashback structure of SBI credit cards. These changes will directly affect how cardholders earn benefits on certain types of transactions—especially on rent payments, insurance premiums, and utility bills.

Major Changes Coming into Effect

SBI Cards & Payment Services is revising the terms of use for several of its credit card categories. As part of this update, three major rule changes are expected to impact a large segment of customers:

1. No Reward Points on Rent and Educational Payments

From July 15 onwards, transactions made for rent payments or educational institutions will no longer earn reward points. Previously, such expenses contributed to your monthly reward tally, but that benefit is now being withdrawn. This move is likely aimed at reducing reward exploitation and maintaining profitability across spending categories.

2. Cashback Benefits Slashed on Utility and Insurance Payments

Another major blow for SBI card users is the removal of cashback and rewards on payments related to:

• Insurance premiums

• Utility bill payments (electricity, water, gas, etc.)

Many cardholders use their credit cards to pay for these recurring expenses in hopes of earning small rewards or cashback. With this new rule, those benefits will cease, potentially reducing the overall value proposition of the card for users who primarily use it for such bills.

3. Reduced Benefits on Co-Branded Cards

SBI also announced that travel and shopping benefits on select co-branded cards will be limited or revised. Co-branded credit cards are typically offered in partnership with airlines, travel platforms, or retail chains, and come with special perks. From July 15, those perks will be scaled down, although detailed benefit tables may vary based on the card type.

How These Changes Will Impact Users

These policy revisions are likely to affect users who rely on their SBI credit cards for routine monthly expenses, such as paying rent, bills, and insurance. Previously, such transactions provided a way to accumulate points or earn cashback—effectively maximizing the card’s utility.

Going forward, cardholders will need to revisit their spending strategies and evaluate whether their SBI credit card continues to offer value in light of these benefit cuts. If a significant portion of your monthly expenses falls into the excluded categories, it might be time to compare alternative cards that offer better returns or switch to debit-based transactions for such payments.

What Should SBI Card Users Do Now?

• Review Terms & Conditions: Go through the updated T&Cs of your specific SBI credit card. The changes may vary slightly depending on your card variant.

• Plan Transactions Smartly: Focus on spending in categories that still offer points or cashback.

• Explore Alternatives: If your rewards are significantly reduced, consider looking at credit cards from other providers that offer better perks on the same spending categories.

• Track Updates: Keep an eye on official communications from SBI Card for any further clarifications or future modifications.

Final Thoughts

While credit cards continue to be a powerful financial tool for managing cash flow and earning benefits, this update from SBI highlights the importance of staying informed about policy changes. Starting July 15, 2025, SBI credit cardholders will no longer receive rewards or cashback on certain common expenses. It’s a wake-up call for users to reassess their financial habits and optimize how they use their cards in the long run.