SBI Card, a subsidiary of State Bank of India, has announced a major change in the rewards structure of its popular Cashback SBI Card.
This card has been widely used by online shoppers because of its simple cashback system. However, the bank has now reduced the monthly cashback limit, which may affect your savings strategy.
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20% Reduction in Monthly Cashback
As per the new rules, the maximum cashback you can earn in one statement cycle (one month) has been reduced from ₹5,000 to ₹4,000. This means there is a 20% cut in total benefits.
Once you reach ₹4,000 cashback in a month, you will not receive any additional cashback for further spending during that period.
New Limits on Online and Offline Spending
The bank has also introduced separate limits for different types of spending:
Online Shopping: You will continue to earn 5% cashback, but it is now capped at ₹2,000 per month.
Offline/POS Spending: You will earn 1% cashback, also limited to ₹2,000 per month.
To get the full ₹4,000 cashback benefit, you will need to spend in a balanced way across both online and offline categories.
Changes in Reward Points Redemption
The rules for redeeming reward points have also been updated:
Points can now be redeemed only in multiples of 4,000 (such as 4,000, 8,000, etc.).
A maximum of 60,000 points can be redeemed in one month.
These changes apply not only to cashback cards but also to other cards like the PhonePe SBI Card PURPLE and SBI Card SELECT BLACK.
What Should Cardholders Do?
Experts suggest that while such updates are common, users should check their current reward points before April 1.
In today’s digital payment environment, these changes will especially impact those who depend heavily on a single credit card for most of their spending.