SBI Aims to Cut Reward Points for PhonePe Card Users

SBI is set to significantly reduce the reward points available through the PhonePe credit card from July 1, 2026. This move is likely to shock many customers who currently rely on these rewards for financial benefits.

Impact of Reduced Reward Points

The changes will notably affect both the Purple and Select Black cardholders. Specifically, the monthly reward points limit has been revised based on various transaction types:

• PURPLE cardholders: Insurance spends will earn only 250 reward points, while other PhonePe spends will be capped at 750 points. The online spend cap has also dropped from 1,000 to 750.
• Black Card users: Insurance-related expenses limit is now 500 points, with an overall cap of 1,500 for other PhonePe transactions. For online spending, the reward points have been cut in half from 2,000 to 1,000.

Furthermore, certain expenses will no longer earn any reward points:

• Toll and bridge payments
• Gift purchases
• Jewelry purchases
• Payments to educational institutions
• Utility bills not made through the PhonePe app
• Insurance premiums not processed via PhonePe app
• UPI transactions conducted outside PhonePe platform

SBI has confirmed that all other features and benefits of these credit cards remain unchanged. Cardholders are advised to adjust their spending habits accordingly.

Potential Impact on Customer Spending Behaviors

The revised rules may prompt users who previously depended on reward points for financial gains or perks to reconsider their purchasing choices. It could significantly impact spending patterns, particularly in insurance and utility-related categories where rewards are now capped.