Credit Card Rules Changing from July 2025: Big Updates from SBI, HDFC, and Kotak You Must Know

If you are a credit card user with SBI, HDFC Bank, or Kotak Mahindra Bank, get ready for some significant changes starting July 2025. These changes will directly impact how you use your credit cards, including reward programs, insurance benefits, transaction charges, and even the cards themselves.

Here's a detailed look at the key updates you need to know so you can plan your finances better and avoid unexpected surprises.

🔴 SBI Credit Cards: Free Air Accident Insurance Will Be Discontinued

Effective July 15, 2025, SBI Card will terminate free air accident insurance coverage offered on select premium credit cards.

• The benefit of ₹1 crore air accident insurance will no longer be available on:

  • SBI Card ELITE

  • SBI Card Miles ELITE

  • SBI Card Miles Prime

• Additionally, the ₹50 lakh cover currently offered on:

  • SBI Card PRIME

  • SBI Card PULSE
    will also be discontinued.

Impact: If you rely on your SBI credit card for travel insurance protection, it’s time to consider alternative coverage or dedicated travel insurance plans. This change could affect frequent travelers the most.

🔺 HDFC Bank to Introduce New Charges and Reward Point Restrictions

From July 1, 2025, HDFC Bank is introducing new transaction fees and revising its reward policy for credit card users.

🧾 New Transaction Fee:

A 1% charge will apply to the following transaction categories:

• Online gaming

• Wallet loading (e.g., Paytm, PhonePe wallets)

• Utility bill payments

This fee will be capped at ₹4,999 per month.

🎁 Reward Points Update:

• No reward points will be granted on transactions in the above categories.

• For insurance-related payments, a monthly reward points cap will now be enforced.

Impact: Users who frequently use their cards for gaming, wallet recharges, or bill payments will feel the pinch. The reward program, which was once a major attraction for HDFC credit cards, will become less generous for these spends.

🔄 Kotak Mahindra Bank to Discontinue Myntra Co-Branded Credit Card

Starting July 10, 2025, Kotak Mahindra Bank will shut down the Myntra Kotak Credit Card and shift all existing users to the Kotak League Credit Card.

What You Should Do:

• Carefully review the features, benefits, and fee structure of the new Kotak League card.

• Understand any differences in reward rates, partner discounts, or annual charges to avoid surprises.

Impact: Customers who opted for the Myntra co-branded card for exclusive fashion-related offers may lose some of those benefits and will need to adapt to a different set of features.

📌 Why These Changes Matter

These changes indicate a clear trend among banks to optimize their credit card services, often in response to rising operational costs and evolving customer behavior.

Whether it's scaling back complimentary insurance, capping rewards, or reworking partnerships with brands like Myntra — these updates affect how customers derive value from their credit cards.

✅ Tips for Credit Card Users

Review your card benefits immediately – Check your emails or bank app for updated terms and conditions.

Adjust your spending habits – Avoid high-fee transaction categories or consider using debit cards or net banking for such spends.

Explore alternate cards – If your current card is losing key benefits, compare with other options in the market that offer better value for your usage pattern.

Monitor charges closely – Unexpected fees can easily go unnoticed. Stay alert to avoid unnecessary costs.

🔚 Final Word

Starting July 2025, credit card users of SBI, HDFC, and Kotak Mahindra Bank will face several impactful changes that could affect their spending behavior and overall financial planning. Staying informed and making timely decisions is the key to maximizing rewards and minimizing losses.