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SBI Card has announced a significant devaluation of the CASHBACK SBI Card, with effect from 01 May 2023.
Table 1: Key Changes in CASHBACK SBI Card Benefits
| Benefit | Old | New |
|---|---|---|
| Online Transactions | 5% cashback up to ₹10,000 per month. | 5% cashback up to ₹5,000 per month.* |
| Offline Transaction | 1% cashback with no cap. | 1% cashback capped at ₹5,000 per month.* |
| Lounge Access | 1 complimentary domestic lounge access per quarter. | Discontinued. |
| Exclusions | Limited | Utilities, Jewelry, Education, Railways, Gift Shops & Gift Cards |
| * It is not clear from the announcement if the ₹5,000 cap is on online and offline separately or if it is a combined cap. We will update once get clarification. | ||
Prior to this devaluation, the CASHBACK was one of our favorite cards in India and our recommended card for all SBI Card customers, as well as for people looking for a dedicated card for domestic travel bookings and online shopping.
It ranked highly across all credit cards available from SBI Card and indeed by all card providers in India.
Table 2: The CASHBACK SBI Card pre-Devaluation
| Monthly Spend | ₹5K | ₹10K | ₹20K | ₹50K | ₹100K |
|---|---|---|---|---|---|
| Net Reward Yield | 1.9% | 2.1% | 2.2% | 2.3% | 2.3% |
| Est. Monthly Reward (₹) | 90 | 205 | 440 | 1,130 | 2,340 |
| All-India Rewards Rank* | 6 | 5 | 7 | 17 | 4 |
| Within Bank Rank* | 1 | 1 | 1 | 10 | 1 |
| * Based on est. net reward yield for nearly 400 credit cards in India, for each monthly spending level. Read about how we calculate the net reward yield here. | |||||
While we are waiting for further details, our initial estimate is that these changes will reduce the net reward yield for the card marginally for all users, perhaps by 0.1-0.3%.
See our post on the best credit cards in India, if you are looking for alternatives.
However, the CASHBACK should remain a great choice for most SBI Card customers except for those spending more than ₹1 lacs online every month.
If you were spending more than ₹1 lacs a month on your CASHBACK SBI Card, then the additional spending will no longer earn meaningful rewards for you.
If the newly excluded categories like education & school fees and utilities were a big portion of your spending on the card the impact would be larger for you.
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8 reward points / ₹400 on bill payments & education and 1 point on all other spends. Fuel surcharge waiver of up to ₹100 per month.
