SBI Revises Credit Card Rewards Program Effective September 1, 2025: What Cardholders Need to Know
SBI revises credit card rewards program: State Bank of India (SBI), India’s largest public sector bank, has rolled out significant changes to its credit card rewards program effective September 1, 2025. The revision notably excludes reward points accrual on certain spending categories such as digital gaming, government payments, and select other segments. This move is part of SBI’s broader strategy to optimize its rewards portfolio while aligning with industry trends and regulatory guidelines.
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SBI Credit Card Rewards Program Overview
SBI credit cards have long been popular due to their competitive rewards, cashback offers, and partnerships spanning retail, travel, dining, and entertainment. The bank’s card portfolio includes various variants catering from entry-level users to premium customers, including co-branded cards with retail and airline partners.
Until August 2025, SBI credit cardholders could earn reward points on a wide range of transactions, including online gaming, government payments (such as utility bills and taxes), and digital wallet top-ups—categories that saw growing consumer adoption.
However, increasing scrutiny over transaction types, fraud risk in some categories, and evolving payment regulations have prompted SBI to reassess reward eligibility.
Details of the Revised Rewards Program
From September 1, 2025, SBI has updated the terms and conditions of its rewards program with key changes including:
Exclusion of Reward Points on Specific Categories
- Digital Gaming: Purchases related to mobile games, PC games, in-game currencies, and subscriptions will no longer earn reward points.
- Government Payments: Transactions such as tax payments, municipal bills, vehicle registrations, and other government-related fees made via SBI credit cards are excluded from rewards.
- Digital Wallet Top-ups: Recharge of digital wallets (like Paytm, PhonePe, Google Pay) through SBI credit cards is not eligible for points accumulation.
- Financial Services: Payments towards loan EMIs or insurance premium payments may also see restrictions.
- Others: Certain business-to-business (B2B) transactions and prepaid gift card purchases are excluded as per revised policy.
Revised Reward Point System
The SBI credit card Reward point earning rates remain unchanged for other retail, travel, dining, and lifestyle spends. The accumulated reward points can be redeemed through the SBI Card portal for merchandise, vouchers, statement credit, flight bookings, and more. However, the unredeemed points now have a validity period of 24 months, encouraging timely usage.
Why Did SBI Make These Changes?
Several factors underlie SBI’s decision to revise the rewards program:
1. Regulatory Compliance and Risk Management: The Reserve Bank of India (RBI) and relevant financial watchdogs have tightened norms around rewards and cashback schemes to minimize misuse and tax evasion risks. Excluding certain categories helps SBI remain compliant and reduce exposure to potential fraud.
2. Sustainable Business Model: Reward points involve financial costs to banks. Categories such as digital gaming and government payments often attract high volumes but lower profitability or higher chargebacks. SBI aims to optimize rewards to focus on segments driving healthy business growth.
3. Market Alignment: Competitors have started narrowing their rewards scope on similar categories. SBI’s revisions reflect broader industry rationalization trends to ensure long-term sustainability.
Impact on SBI Credit Cardholders
Positive Aspects
- Focused rewards encourage more valuable customer interactions and loyalty benefits on lifestyle and travel spends.
- Enhanced communication and transparency make program terms clearer than before.
- Customers with diversified spending can still maximize points on non-excluded categories.
Challenges and Concerns
- Customers heavily using credit cards for excluded categories face reduced point earnings.
- Digital gaming enthusiasts and taxpayers using SBI cards may feel penalized.
- Need for users to adjust spending behaviour or consider alternative payment methods.
Expert Opinions and Industry Response
Credit card industry analysts view SBI’s move as a calculated effort to maintain profitability while managing regulatory risks.
Anand Sharma, a banking analyst, commented, “This is a natural evolution as banks weigh rewards cost against regulatory oversight. SBI’s focus on traditional consumer spends over potentially risky categories is prudent.”
Some consumer advocacy groups urge SBI to consider phased rollouts or enhanced reward tiers for loyal users impacted by exclusions, to balance fairness.
Key Takeaways for SBI Cardholders
The SBI Credit Card Reward points on digital gaming, government bill payments, and wallet top-ups are no longer earned from September 1, 2025. Hence, customers should review their spending habits and maximize rewards in eligible categories and timely redemption of reward points i.e., within 24 months is essential.
SBI continues offering a variety of credit cards tailored for different customer needs with competitive benefits outside excluded categories. Regularly check the official SBI Card website and mobile app for updated reward catalogues and announcements to get the benefits of SBI Credit Card Reward Programme. You can also subscribe to official email newsletters and SMS alerts or reach out to SBI customer care through phone, chat, or in-branch visits for personalized guidance.
Conclusion: Revised SBI Credit Card Reward Program
The revision of SBI’s credit card rewards program signals the bank’s commitment to evolving responsibly while continuing to reward customer loyalty in sustainable ways. By refining rewards eligibility and focusing on core consumer categories, SBI aims to offer a balanced, transparent, and exciting rewards experience for its millions of cardholders.
