This July 2025, India’s biggest banks, SBI, HDFC, ICICI, Axis, and Kotak Mahindra, are rolling out major changes to their credit card rules. Think higher fees, fewer rewards, and tougher repayment terms. These updates could hit your wallet hard, whether you’re a casual spender or a premium cardholder.
If you use your card for EMIs, wallet top-ups, bill payments, or international travel, now’s the time to rethink your strategy. Here’s exactly what’s changing at each bank—and how to stay ahead of the curve.
SBI Credit Card Changes
Effective July 15, 2025: Tougher Repayment Rules and Removed Perks
SBI is overhauling how minimum payments are calculated and removing major benefits from premium cards.
Key Changes:
- Minimum Amount Due (MAD) Update: SBI’s new formula includes 100% of any EMI due, GST, fees, interest, over-limit amounts, and 2% of any remaining balance. For cardholders used to paying just the bare minimum, this means a significantly higher monthly outflow.
- Payment Allocation Overhaul: Payments will now be applied first to GST, followed by EMIs, fees/interest, balance transfers, retail spends, and finally, cash advances. This sequence may result in higher interest charges if your balance isn’t paid in full.
- Discontinuation of Travel Insurance: Complimentary air accident insurance worth ₹50 lakh to ₹1 crore will no longer be available on premium cards like ELITE, PRIME, and Pulse. For frequent travelers, this cuts back a major benefit.
What You Should Do: Start budgeting to pay more than the minimum each month. Review your card’s insurance offerings and consider supplementary coverage if needed.
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HDFC Credit Card Changes
Effective July 1, 2025: Digital Spending Now Comes at a Cost with HDFC credit cards.
HDFC is targeting wallet loads, gaming transactions, and insurance payments—common categories for digital-savvy users.
Key Changes:
- New 1% Fee: If your monthly spending on wallet loads, online gaming, or utility bill payments crosses ₹50,000 (₹75,000 for business cards), you’ll be charged a 1% fee (maximum ₹4,999/month). This makes digital transactions significantly more expensive.
- No Reward Points for Gaming: All skill-based gaming transactions will now earn zero reward points. That includes spending on fantasy sports and real-money gaming platforms.
- Caps on Insurance Reward Points: Monthly point caps are being introduced
→ Infinia: 10,000 points
→ Diners Black: 5,000 points
→ All other cards (excluding Marriott Bonvoy): 2,000 points
What You Should Do: Avoid using your card for large wallet top-ups or gaming. If you rely on reward points for insurance payments, consider shifting those payments to other methods.
ICICI Credit Card Changes
Effective July 1, 2025: International and Cash Fees Are Rising
Users who rely on international ATM usage or regular in-branch transactions will now face higher costs.
Key Changes:
- ₹125 Per International ATM Withdrawal: Whether you’re traveling for business or leisure, overseas ATM access will now cost more.
- ₹150 Fee for Excess Branch Transactions: After the first three free in-branch cash transactions each month, every additional visit will incur a ₹150 charge.
What You Should Do: Use digital banking services when possible. If traveling, plan to minimize ATM withdrawals or use prepaid forex cards to reduce fees.
Axis Bank Credit Cards Changes
Effective July 1, 2025
Axis Bank is following a similar route, raising fees for ATM and cash-based transactions.
Key Changes:
- Higher ATM Usage Charges: Charges are increasing for using both non-Axis ATMs and international ATM networks, making it more costly for those who rely on cash withdrawals.
- Branch Cash Limits: Free cash transactions at branches will be limited, with fees applied for excess usage, similar to ICICI’s approach.
What You Should Do: Reduce dependency on branch visits and use digital platforms for everyday banking needs.
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Kotak Mahindra Credit Card Changes
Effective July 1 & 10, 2025: New Fees and Card Replacement
Kotak is not just adjusting fees—it’s replacing an entire co-branded credit card and rolling out transaction charges across categories.
Key Changes:
- Myntra Kotak Card Discontinued (July 10): The popular Myntra Kotak co-branded credit card is being phased out. Cardholders will automatically be migrated to the Kotak League Platinum Credit Card. The new card may not offer similar perks for fashion or e-commerce.
- New Charges Introduced (from June 1):
A 1% fee now applies to:
⇒ High-value fuel transactions (above monthly thresholds)
⇒ Wallet reloads
⇒ Skill-based gaming
⇒ Utility bill payments
⇒ Education payments
⇒ Failed standing instructions
⇒ Dynamic currency conversions
What You Should Do: Review your Kotak card usage. If you were using the Myntra card for rewards or discounts, compare the benefits of the new League Platinum Card before accepting the switch.
Tips to Deal With Changing Credit Card Rules
- Read the Fine Print: Visit your bank’s credit card update page to get the latest T&Cs.
- Pay Full Amounts When Possible: Avoid paying only the minimum, especially with SBI’s new structure.
- Avoid High-Fee Categories: Especially wallet loads, gaming, ATM withdrawals, and branch visits.
- Compare and Switch if Needed: If your card no longer aligns with your spending patterns, explore other options in the market.
- Track Reward Point Changes: Don’t let your points go to waste—monitor expiry rules and new limits.
- Final Thoughts
The July 2025 updates mark a major shift in how Indian credit card issuers want you to use your card. It’s clear that banks are discouraging partial payments, high-cost spends, and reward-heavy categories. Whether you’re a frequent flyer, a digital spender, or someone who values cashback and rewards, now is the time to reassess your credit strategy.
Stay informed. Spend smart.
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Frequently Asked Questions
What are the key changes to SBI credit cards in July 2025?
SBI has revised its Minimum Amount Due (MAD) calculation to include 100% of EMIs, GST, fees, interest, and 2% of the remaining balance. It has also removed complimentary air accident insurance from premium cards like ELITE, PRIME, and Pulse.
Will I be charged extra for digital wallet or gaming spends on HDFC cards?
Yes. HDFC is now charging a 1% fee on wallet loads, skill-based gaming, and utility bill payments over ₹50,000/month (₹75,000 for business cards). Gaming spends also no longer earn reward points.
What fees have been introduced by ICICI and Axis Banks?
Both ICICI and Axis have increased charges on ATM withdrawals and branch cash transactions. For example, ICICI now charges ₹125 per international ATM withdrawal and ₹150 for branch cash transactions after the first three free ones.
What’s happening to Kotak’s Myntra credit card?
Kotak is discontinuing the Myntra co-branded credit card on July 10, 2025. All users will be migrated to the Kotak League Platinum Credit Card, which may not carry the same benefits. Additionally, new fees have been added for wallet loads, fuel, gaming, and utility spends.
How can I avoid these new charges?
To avoid the impact of these new charges, start by paying your full credit card bill each month to sidestep rising interest and revised minimum payment rules. Limit high-fee transactions like wallet loads, online gaming, and repeated ATM or branch withdrawals. Lastly, review your current card benefits, if they no longer match your spending habits, consider switching to a card that offers better rewards or lower fees for your needs.
