SBI Cards , a leading credit card issuer in India, has announced significant changes to its offerings and billing processes, affecting multiple co-branded credit cards and customer billing calculations.

Discontinuation of Complimentary Air Accident Insurance

Effective August 11, SBI Card will discontinue the complimentary air accident insurance coverage on several of its co-branded credit cards. This change impacts a range of cards offering substantial coverage:

₹1 Crore Coverage Cards:

• UCO Bank SBI Card ELITE
• Central Bank of India SBI Card ELITE
• PSB SBI Card ELITE
• KVB SBI Card ELITE
• KVB SBI Signature Card
• Allahabad Bank SBI Card ELITE

₹50 Lakh Coverage Cards:

• Various PRIME and Platinum variants across multiple partner banks

This move represents a significant shift in the value proposition of these co-branded cards, potentially affecting cardholders who valued this insurance benefit.

Revised Billing Process

In addition to the insurance changes, SBI Card has implemented updates to its billing processes, effective from July 15. These changes include:

1. New Minimum Amount Due Calculation

The Minimum Amount Due now includes:

• Full GST
• EMIs
• Fees
• Charges
• Finance charges
• Over-limit amounts
• 2% of the remaining unpaid balance

2. Modified Payment Adjustment Order

SBI Card has revised the sequence for adjusting payments, prioritizing in the following order:

1. GST
2. EMIs
3. Fees
4. Charges
5. Finance charges
6. Balance transfers
7. Retail transactions
8. Cash advances

These billing updates aim to provide more clarity on payment allocations and ensure regulatory compliance, particularly with respect to GST payments.

The discontinuation of the air accident insurance coverage and the changes in billing processes mark significant updates for SBI Card customers. Cardholders of the affected co-branded cards may need to reassess the value proposition of their cards in light of these changes. Meanwhile, all SBI Card customers should take note of the new billing calculations to better manage their credit card payments and understand how their payments will be applied to their outstanding balances.

SBI Cards , India's largest pure-play credit card issuer, has partnered with PhonePe to launch two new co-branded credit cards, marking a significant move in the digital payments landscape. The new offerings, PhonePe SBI Card SELECT BLACK and PhonePe SBI Card PURPLE, are designed to provide substantial rewards on everyday spending, particularly for transactions made through the PhonePe app.

Key Features of the New Cards

PhonePe SBI Card SELECT BLACK

The premium variant offers the following benefits:

• Up to 10% value back as reward points on PhonePe app transactions
• Up to 5% value back on other online shopping platforms
• A welcome e-gift voucher of ₹1,500 upon payment of the ₹1,499 joining fee
• A ₹5,000 travel voucher for annual spends of ₹5 lakh
• Four complimentary domestic lounge visits per year
• Complimentary Priority Pass membership for international lounge access

PhonePe SBI Card PURPLE

Designed for a broader customer base, this card includes:

• Up to 3% value back as reward points on PhonePe app spends
• 2% value back on other online transactions
• A ₹500 welcome e-gift voucher upon payment of the ₹499 joining fee
• A ₹3,000 travel voucher for annual spends of ₹3 lakh

Versatility and Accessibility

Both card variants will be available on RuPay and VISA payment networks. The RuPay versions can be linked to UPI for payments at UPI merchants, while the VISA variants can be tokenized on PhonePe for secure online transactions. Customers can apply for and manage their cards directly through the PhonePe app, streamlining the application and bill payment processes.

Rewards on Everyday Spending

Cardholders can earn reward points on various everyday transactions, including:

• Groceries
• Bill payments
• Travel bookings
• Utility payments
• Insurance premium payments

These rewards apply to both online and offline shopping platforms, catering to diverse consumer needs.

Strategic Partnership

Ms. Salila Pande, MD & CEO of SBI Card, emphasized the significance of this partnership in promoting credit card usage by leveraging SBI Card's expertise and PhonePe's extensive digital network. The collaboration aims to offer a unique blend of benefits and convenience with every transaction.

Sameer Nigam, Co-founder & CEO of PhonePe, highlighted the company's commitment to simplifying financial services and making them accessible to all Indians. He stated that this partnership goes beyond convenience, aiming to build infrastructure for a more inclusive credit landscape in India.

Additional Benefits

The launch of these co-branded credit cards represents a strategic move by SBI Card and PhonePe to capitalize on the growing digital payments market in India while offering tailored rewards to meet evolving consumer needs. As the cards roll out in phases, they are expected to attract a wide range of customers looking for enhanced value on their everyday digital transactions.