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.
Tougher Repayment Rules and Perks Removed on SBI Credit Cards
Effective July 15, 2025
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 travellers, this cuts back a major benefit.
What You Should Do: Start budgeting to pay more than the minimum each month. Review your credit card insurance offerings and consider supplementary coverage if needed.
Digital Spending Now Comes at a Cost on HDFC Credit Cards
Effective July 1, 2025
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.
International and Cash Fees Are Rising for ICICI Credit Cards
Effective July 1, 2025
Users who rely on international ATM usage or regular in-branch transactions. with this latest credit card rule set, they will now face higher costs.
Key Changes:
- ₹125 Per International ATM Withdrawal: Whether you’re travelling 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 travelling, plan to minimise 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.
New Fees and Card Replacement on Kotak Mahindra Credit Cards
Effective July 1 & 10, 2025
With this new rules, 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.
What Every Cardholder Should Do Now
- 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 new rules 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 cash back and rewards, now is the time to reassess your credit strategy.
Stay informed. Spend smart.
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