Major changes to credit card rules coming in July
What's the story
Leading Indian banks, such as State Bank of India (SBI), HDFC Bank, and Kotak Mahindra Bank, are set to make major changes in their credit card benefits from July 2025. The changes include the removal of certain insurance benefits, the introduction of new transaction fees, and product migrations. Cardholders are advised to take note of these changes carefully to avoid any unexpected costs or disruption in services.
SBI's changes
Removal of air accident insurance cover by SBI
SBI Card will remove its free air accident insurance on select premium and co-branded cards from July 15. The cover was worth ₹1 crore for SBI Card Elite, Miles Elite, and Miles Prime holders. It also offered a ₹50 lakh cover for those with SBI Card Prime and Pulse. From August 11, the benefit will be removed from co-branded cards like UCO Bank SBI Card ELITE, among others, according to The Economic Times.
Payment rules
Changes in the minimum amount due calculation
SBI has also revised its Minimum Amount Due (MAD) calculation method. From July 15, the MAD will include 100% GST, EMI, charges, and finance charges plus 2% of the outstanding balance. The payment settlement order will now be: GST > EMI > charges > finance charges > balance transfer > retail spends > cash advances.
HDFC's changes
New transaction fees on select HDFC Bank credit card spends
HDFC Bank will introduce new transaction charges on select credit card transactions from July 1. A 1% fee (capped at ₹4,999/month) will be levied on online skill-based gaming spends above ₹10,000/month, wallet loads above ₹10,000/month, and utility bill payments over ₹50,000/month (₹75,000 for business cards). No reward points will be given on gaming spends, while other categories have monthly caps.
Kotak's change
Kotak Mahindra Bank to discontinue Myntra-Kotak Credit Card
Kotak Mahindra Bank will discontinue the Myntra Kotak Credit Card from July 10, and migrate customers to the Kotak League Credit Card. Customers are advised to check the features and rewards of their new card, as it will automatically replace existing benefits. With banks revising card benefits and introducing new charges, consumers should keep an eye on their monthly spending patterns in areas like online gaming, wallet usage, and high-value utility payments.