Thousands of SBI Card customers who regularly earn reward points through bill payments, insurance premiums, online shopping, and digital transactions may soon see reduced benefits. SBI Card has announced major changes to the reward points structure for PhonePe SBI Credit Card PURPLE and PhonePe SBI Credit Card SELECT BLACK holders.
The revised reward program will come into effect from July 1, 2026, impacting how cardholders accumulate reward points across several spending categories. In addition to reducing monthly reward limits, the company has also expanded the list of transactions that will no longer qualify for reward points.
For customers who actively use these cards to maximize rewards, understanding the new rules is essential to avoid disappointment and plan spending more effectively.
Cardholders using the PhonePe SBI Credit Card PURPLE will experience a significant revision in the monthly reward points structure.
Previously, eligible spending through PhonePe could earn up to 1,000 reward points per month. Under the revised framework, the reward cap will be divided into separate categories.
From July 1:
Insurance-related spending will be eligible for a maximum of 250 reward points per month.
Other eligible PhonePe transactions will earn a maximum of 750 reward points per month.
The reward cap on online spending will be reduced from 1,000 points to 750 points monthly.
This means users who frequently make digital payments through the platform may accumulate fewer rewards than before.
The changes are not limited to PURPLE card users.
Customers holding the PhonePe SBI Credit Card SELECT BLACK will also see lower reward earning opportunities.
Earlier, cardholders could earn up to 2,000 reward points each month on eligible PhonePe transactions. Under the new rules:
Insurance payments will earn a maximum of 500 reward points per month.
Other PhonePe transactions will be eligible for up to 1,500 reward points monthly.
The reward cap for online spending will be reduced from 2,000 points to 1,000 points per month.
For high-spending customers who rely on reward accumulation, these revisions could noticeably reduce overall benefits.
In addition to lowering reward caps, SBI Card has expanded the list of spending categories excluded from reward programs.
Beginning July 1, 2026, reward points will not be awarded on the following transactions:
Toll payments
Bridge toll charges
Gift purchases
Jewellery purchases
Fees paid to educational institutions
Reward points will also not be available on:
Utility bill payments made outside the PhonePe platform
Insurance premium payments processed outside PhonePe
UPI transactions completed outside the PhonePe app
These exclusions could affect customers who use their credit cards for recurring household and personal expenses.
SBI Card has clarified that only the reward point structure and eligibility criteria are being modified.
Other card benefits, features, and services associated with the PhonePe SBI Credit Card PURPLE and SELECT BLACK variants will continue without any changes.
Cardholders will still be able to use their cards for purchases and enjoy existing features that are unrelated to the reward point program.
Reward programs are often a key factor when customers choose premium credit cards. Many users strategically route insurance payments, utility bills, and large purchases through their cards to maximize reward earnings.
With the new restrictions, some spending categories that previously generated substantial reward points may now provide limited or no benefits at all.
As a result, customers who depend heavily on reward-based savings may need to reassess their spending patterns and evaluate whether their current card continues to meet their expectations.
To continue maximizing benefits, users should review the revised reward structure carefully before making large payments.
Cardholders may consider:
Tracking monthly reward caps more closely
Prioritizing eligible spending categories
Reviewing alternative reward programs if necessary
Understanding which transactions still qualify for rewards
Avoiding assumptions based on previous earning patterns
Being aware of the updated rules can help customers avoid surprises and make better use of their credit card benefits.
The upcoming changes to PhonePe SBI Credit Card PURPLE and SELECT BLACK cards mark a significant shift in reward point earnings. Lower monthly limits and expanded exclusions mean many users will earn fewer rewards from insurance payments, online transactions, education fees, and several other spending categories.
Since the revised structure takes effect from July 1, 2026, cardholders should familiarize themselves with the new terms and adjust their spending strategies accordingly to make the most of available benefits.
