Credit Card Holders Alert: SBI, HDFC, and Kotak to Revise Card Benefits and Rules from July 2025
Key Changes to Insurance, Charges, and Card Products—What Customers Need to Know
Starting July 2025, major banks including SBI, HDFC Bank, and Kotak Mahindra Bank will introduce significant changes to their credit card benefits, charges, and product offerings. Cardholders are strongly advised to review these updates to avoid unexpected costs and maintain access to essential features.
SBI Card: Insurance Benefits Withdrawn and Payment Rules Updated
- Air Accident Insurance: From July 15, 2025, SBI Card will discontinue complimentary air accident insurance on several premium and co-branded cards, including the Rs 1 crore cover on SBI Card Elite, Miles Elite, and Miles Prime, and the Rs 50 lakh cover on SBI Card Prime and Pulse.
- More Co-branded Cards Affected: From August 11, 2025, cards such as UCO Bank SBI Card ELITE and Central Bank of India SBI Card ELITE will also lose this benefit.
- Minimum Amount Due (MAD): The new formula will include 100% of GST, EMI, charges, and finance costs, plus 2% of other dues.
- Payment Settlement Order: Payments will now be settled in the following order: GST > EMI > charges > finance charges > balance transfer > retail spends > cash advances.
HDFC Bank: New Charges on Gaming, Wallet Loads, and Utilities
- New Fees (from July 1, 2025):
- 1% transaction fee on online skill-based gaming spends exceeding Rs 10,000/month (capped at Rs 4,999/month).
- 1% fee on wallet loads over Rs 10,000/month.
- 1% charge on utility bill payments above Rs 50,000/month (Rs 75,000 for business cards).
- No Reward Points: Online gaming spends will not earn reward points.
- Rewards Capped: Monthly reward caps are set at 10,000 points (Infinia), 5,000 (Diners Black), and 2,000 (others), with Marriott Bonvoy remaining uncapped.
- Additional Charges: Education, rent, and fuel spends may also attract fees if routed through third-party platforms or if spending exceeds certain thresholds.
Kotak Mahindra Bank: Myntra Card Replaced
- Myntra Kotak Credit Card: To be discontinued from July 10, 2025.
- Migration to Kotak League Credit Card: Existing users will be automatically transitioned. Customers should review the new card’s benefits and rewards structure as features will change.
What Cardholders Should Do
- Monitor Spending: Be especially attentive to monthly expenditures in online gaming, wallet loads, and high-value utilities, as new charges can quickly add up.
- Review Terms: Regularly check updated card terms to avoid unexpected fees and ensure uninterrupted access to benefits.
- Product Migration: If your card is being replaced, compare new features with the previous card to understand any changes in rewards or protections.
