SBI Card updates credit card rules: What changes from today
What's the story
Starting today, SBI Card has introduced new terms for its credit card customers. The changes will affect bill calculations and remove some complimentary insurance covers. The bank will now calculate the Minimum Amount Due (MAD) differently, including the full GST amount, EMIs, fees and charges, finance charges, and any overlimit amount. In addition to this, MAD will now also include 2% of the remaining balance.
Payment adjustments
New payment adjustment strategy
Along with the new MAD calculation, SBI Card has also changed its payment adjustment strategy. Now, any payment made will first go toward clearing GST, then EMIs, fees and charges, finance charges. This will be followed by balance transfers, retail spends before finally cash advances are settled. These changes may impact how customers manage their payments, although the specific intent behind the changes has not been revealed.
Insurance withdrawal
Complimentary air accident insurance cover withdrawn
In another major change, SBI Card has withdrawn its complimentary air accident insurance. The ₹1 crore cover on SBI Card ELITE, PULSE, and MILES ELITE is no longer available. The ₹50 lakh cover on SBI Card PRIME and MILES PRIME cards has also been withdrawn. These changes are applicable for both existing and new cardholders of the bank.