If you use an SBI credit card, this news will prove very useful. The company has made some significant changes to its credit card rules, especially those related to reward points, which will directly impact your pocket. SBI Card has completely revamped the rewards system for its premium co-branded cards and significantly reduced the benefits.

Did you know that you won't earn as many reward points as you used to when shopping online or paying utility bills like electricity and water through the PhonePe app? This change will reduce your savings. Let's understand in simple terms what this whole math is and how it will affect your pocket.

New math for rewards on the PhonePe app

If you use the PhonePe app, this is important for you to know. Currently, when you pay utility bills, mobile recharges, or insurance premiums through the PhonePe app, you earn 100 reward points (about 10% of the amount spent) for every ₹100 spent. Currently, the maximum monthly limit for earning these reward points is 2,000 points.

What is changing from July 1?

Although the maximum monthly points limit remains at 2,000, it has now been divided into two separate sections. According to the new rules, you can now earn a maximum of 500 reward points per month for paying your insurance premium. Furthermore, the maximum monthly reward points limit for the remaining categories has been reduced to 1,500 points.

Disadvantages for online shoppers

Did you know that these new changes have directly harmed online shoppers? The benefits of using this card to shop online on e-commerce websites like Amazon and Flipkart have been directly reduced. The monthly limit for 5% reward points earned on online shopping has been directly halved from 2,000 points to just 1,000 points per month. This means that your savings from online shopping will now be significantly less than before.

Reward points will be zero on these expenses

From the second half of the year, i.e. from July 1, 2026, if you spend on the following items with this card, you will not get a single reward point:

• Paying tolls and bridges
• Buying a gift or souvenir
• Buying gold and silver
• On payment of school or college fees

Additionally, if you make utility bill or insurance payments outside of a specific mobile app, you won't earn any rewards. The same applies to any UPI transactions made outside the PhonePe app, meaning reward points will be zero there as well.

Know which benefits remain unchanged

Amidst this significant reduction by SBI Card, there are some features that remain unaffected. This means they will continue to function as usual. You will continue to earn 1% reward points on other normal online and offline spends.

Additionally, the 1% fuel surcharge waiver on petrol and diesel refills will continue. Furthermore, you will continue to enjoy benefits like free domestic airport lounge access four times a year and complimentary Priority Pass membership, without any minimum spend requirements.