SBI Card Users Attention: Know This Before Making Payments

India’s credit card market has been undergoing rapid transformation in recent years, with issuers constantly adjusting their products to balance profitability with customer expectations. In this context, SBI Card, one of the country’s largest credit card issuers, has announced major changes to its fee structure, rewards programme, and overall benefits. These modifications will come into effect in the coming months and are expected to impact millions of cardholders across different spending categories.

The new structure is aimed at rationalising costs, addressing rising operational expenses, and aligning with industry trends, but it also brings significant implications for customers who rely on SBI Card for everyday spending, travel, and lifestyle perks.

Why SBI Card is Restructuring Its Offerings

The Indian credit card industry has been experiencing steady growth, with card spends crossing ₹2 lakh crore monthly in 2025. However, with the rise in digital transactions, customer acquisition costs, and increased demand for value-added benefits, banks have been compelled to revisit their strategies.

For SBI Card, this restructuring comes at a time when net interest margins are under pressure and interchange fees are being closely monitored by regulators. Moreover, with heightened competition from fintech-led offerings and other private banks, SBI Card aims to streamline benefits for high-value customers while cutting down on costs related to less profitable usage patterns.

The move is also influenced by global trends. Many international card issuers have shifted from flat reward systems to dynamic reward structures where spending categories determine the benefit rate. SBI’s adjustments reflect this trend, prioritising lifestyle and travel spends while reducing benefits in less profitable areas like utility payments and wallet loads.

Key Changes in Fee Structure

One of the most notable changes is in the fee structure applicable to certain card types. Annual fees, renewal charges, and late payment penalties have all been revised. While some premium cards continue to offer fee waivers on achieving annual spending thresholds, entry-level cards are witnessing higher charges.

Another important update is the revision in the fuel surcharge waiver. Earlier available across card variants, this feature is now limited in terms of both transaction size and monthly cap. Similarly, utility bill payments, which were once eligible for reward points, are now excluded for most cardholders.

Revised SBI Card Fee Structure (Effective 2025)
 

These changes indicate that SBI Card is clearly nudging customers towards higher annual spends to continue enjoying fee waivers. While the move may increase revenues for the company, low and mid-tier users could feel the pinch of higher annual costs and fewer benefits.

Changes in Reward Points and Redemptions

SBI Card has also restructured its reward points system, with significant implications for cardholders. Categories such as grocery, dining, and e-commerce continue to remain attractive, but transactions like wallet loads, rent payments, and fuel purchases have been excluded from reward eligibility.

The redemption process has also been revised. While earlier, points could be redeemed at a flat value across partners, the new model introduces variable redemption values. For example, points redeemed for travel bookings and luxury vouchers offer higher value, whereas gift vouchers and statement credits offer lower returns.

This shift is designed to encourage aspirational spending and engagement with partner merchants. However, it also reduces flexibility for customers who preferred straightforward redemption options.

Impact on Everyday Spending

For the average consumer, these changes will influence how they use their card for routine expenses. A large segment of SBI Card users previously relied on bill payments, fuel, and wallet recharges to accumulate points. With these categories now excluded, cardholders may shift their focus to dining, grocery, and travel spends.

Additionally, customers who previously held multiple cards to optimise rewards may reconsider their portfolio. Many will now compare SBI Card’s benefits with competitors like HDFC Bank’s Regalia, ICICI Amazon Pay Card, and Axis Magnus, which are aggressively promoting lifestyle-linked benefits.

Rewards Comparison Across Spending Categories
 

This comparative shift highlights that while SBI Card continues to provide value in aspirational categories, it has significantly limited benefits on essential services. Consumers who rely heavily on utility and fuel spends may find the card less rewarding than before.

The Bigger Picture for Credit Cardholders

The restructuring of SBI Card’s offerings should not be seen in isolation. Across the industry, issuers are reducing freebies and restructuring rewards to cope with rising costs. RBI’s push for transparency and tighter regulations on merchant discount rates have also influenced banks’ ability to subsidise benefits.

From a consumer standpoint, these changes signal the end of an era where all types of spending fetched easy rewards. Going forward, customers will have to be more strategic—choosing the right card for the right category and actively tracking redemption values.

Financial advisors suggest that customers should not hesitate to hold multiple cards if it helps them maximise benefits. For instance, using SBI Card for lifestyle and travel spends while relying on other issuers for fuel or utility payments may help strike a balance.

Conclusion

SBI Card’s latest revisions mark a significant shift in how India’s second-largest card issuer is positioning itself in a highly competitive market. By increasing fees, limiting reward eligibility, and focusing on aspirational categories, the company aims to strengthen profitability while retaining high-value customers.

For cardholders, the changes bring both opportunities and challenges. On one hand, those who frequently spend on dining, travel, and shopping can still derive substantial value. On the other, everyday users relying on fuel and bill payments may need to reassess whether SBI Card remains the best option.

In the larger scheme, the restructuring reflects a maturing credit card industry in India—one where issuers are prioritising sustainable models over blanket benefits. For customers, the key takeaway is simple: understanding category-wise benefits and aligning card usage with personal spending patterns has never been more important.

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LoansJagat Team

‘Simplify Finance for Everyone.’ This is the common goal of our team, as we try to explain any topic with relatable examples. From personal to business finance, managing EMIs to becoming debt-free, we do extensive research on each and every parameter, so you don’t have to. Scroll up and have a look at what 15+ years of experience in the BFSI sector looks like.