Major Credit Card Rule Changes Effective July 2025

Several leading Indian banks — SBI, HDFC Bank, and Kotak Mahindra Bank — have announced significant revisions to their credit card terms and conditions, which will come into effect starting July 2025. These updates involve changes to reward structures, new transaction fees, insurance coverage adjustments, and credit card replacements. Cardholders are strongly advised to review these changes to avoid any disruption or loss in benefits.

SBI Card: Discontinuation of Complimentary Air Accident Insurance and Other Changes

Key Date: July 15, 2025

SBI Card has issued a notification about multiple changes in its credit card features that will become effective from July 15, 2025. These include modifications in minimum due calculation, payment settlement hierarchy, and more critically, the termination of complimentary air accident insurance on specific cards.

Discontinuation of Complimentary Air Accident Insurance

SBI will be removing the air accident insurance benefit that has long been associated with several of its premium credit cards.

Affected Cards and Coverage Details:

• SBI Card Elite, SBI Card Miles Elite, and SBI Card Miles Prime will lose the Rs 1 crore complimentary air accident insurance.

• SBI Card Prime and SBI Card Pulse will no longer carry the Rs 50 lakh air accident insurance benefit.

These benefits will cease to exist starting July 15, 2025. Cardholders who rely on these insurance features for travel safety should consider alternative insurance options post this date.

Other Policy Updates by SBI

In addition to insurance coverage changes, SBI is also revising the structure of minimum due payments and the order in which payments are settled across outstanding balances. While these details are more technical, they can impact interest calculations and late payment charges, making it essential for users to review their monthly billing statements carefully after the policy change.

HDFC Bank: Revised Transaction Charges and Reward Point Rules

Effective From: July 1, 2025

HDFC Bank is bringing in a comprehensive revision of its credit card usage charges, mainly targeting high-frequency categories such as online gaming, wallet top-ups, and utility bill payments.

New Transaction Fee Introduction

A 1% fee, capped at Rs 4,999/month, will be applicable on the following transaction categories:

• Online skill-based gaming

• Digital wallet loading (e.g., PayTM, Mobikwik, etc.)

• Utility bill payments exceeding Rs 50,000 per month for consumer cards, and Rs 75,000 per month for business cards

This fee is being introduced as part of the bank’s effort to align spending incentives with actual cost structures and transaction volumes.

Reward Point Limitations

Certain spending categories will now be subject to reward point capping, especially for insurance-related transactions:

• Infinia Card: Reward points capped at 10,000/month

• Diners Black Card: Capped at 5,000/month

• Other HDFC cards: Mostly limited to 2,000/month

• Marriott Bonvoy Card: Exempt from this cap

Additionally, no reward points will be provided for gaming-related spending. This may significantly impact users who frequently transact in these categories and rely on points for redemptions or cashback.

Kotak Mahindra Bank: Myntra Credit Card to Be Replaced

Effective Date: July 10, 2025

Kotak Mahindra Bank has announced the phasing out of its co-branded Myntra Kotak Credit Card. Starting July 10, 2025, all current users of this card will be automatically migrated to the Kotak League Credit Card.

Changes and Action Points for Cardholders

The Kotak League Credit Card will replace the Myntra co-branded variant, and while basic services will remain uninterrupted, users should carefully review the new benefits, reward structures, and associated charges of the new card.

Changes may include:

• Different reward accumulation rates

• Altered spend categories for cashback

• Updated merchant tie-ups

Myntra-specific offers and reward systems may no longer apply under the Kotak League Credit Card, impacting frequent shoppers on the platform.