Major Banks Adjust Credit Card Benefits: Important Update for Cardholders
Starting in July 2025, major banks in India, including State Bank of India (SBI), HDFC Bank, and Kotak Mahindra Bank, will implement significant changes to their credit card offerings. These updates will encompass alterations to insurance benefits, the introduction of new transaction charges, and the migration of certain products. Cardholders are urged to familiarize themselves with these changes to avoid unexpected fees and disruptions in benefits.
SBI Card Changes: Insurance and Payment Updates
SBI Card will eliminate its complimentary air accident insurance for several premium and co-branded cards starting July 15, 2025. This change affects cards such as the SBI Card Elite, which previously offered a coverage of Rs 1 crore, and the SBI Card Prime, which provided Rs 50 lakh in coverage. Additionally, from August 11, 2025, co-branded cards, including those linked to UCO Bank and Central Bank of India, will also lose this insurance benefit.
Moreover, SBI has revised its Minimum Amount Due (MAD) calculation. As of July 15, the MAD will now include 100% of GST, EMI, charges, and finance costs, along with 2% of any remaining dues. The order of payment settlement will also change, prioritizing GST, EMI, and other charges before retail spends and cash advances. Cardholders should take note of these updates to manage their payments effectively.
HDFC Bank: New Transaction Fees Introduced
HDFC Bank will introduce new transaction fees for credit card users starting July 1, 2025. A 1% transaction fee, capped at Rs 4,999 per month, will apply to online skill-based gaming expenditures exceeding Rs 10,000, wallet loads over Rs 10,000, and utility bill payments above Rs 50,000 (or Rs 75,000 for business cards). Notably, no reward points will be awarded for gaming-related transactions.
While insurance-related spending remains exempt from these new charges, there will be monthly caps on reward points for various card types. For instance, Infinia cardholders can earn up to 10,000 points, while those with Diners Black can earn 5,000 points. Other cards will have a limit of 2,000 points. Furthermore, charges will apply to education, rent, and fuel expenditures if processed through third-party applications or if they exceed specified limits.
Kotak Mahindra Bank: Transitioning Credit Card Products
Kotak Mahindra Bank will discontinue the Myntra Kotak Credit Card on July 10, 2025, transitioning customers to the Kotak League Credit Card. This change means that existing users will automatically lose their current benefits and will need to familiarize themselves with the features and rewards structure of the new card.
As banks tighten their credit card offerings and introduce new charges, consumers are encouraged to closely monitor their spending patterns, particularly in areas such as online gaming, wallet transactions, and high-value utility payments. Reviewing the updated terms and conditions will be crucial for cardholders to avoid unexpected fees and ensure continued access to essential features.
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