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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.

Major Changes for PhonePe SBI Credit Card PURPLE Users

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.

SELECT BLACK Cardholders Also Face Reduced Benefits

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.

Transactions That Will No Longer Earn Reward Points

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:

Transportation-Related Payments

• Toll payments

• Bridge toll charges

Shopping Categories

• Gift purchases

• Jewellery purchases

Education Payments

• Fees paid to educational institutions

Utility and Insurance Transactions Outside PhonePe

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.

What Remains Unchanged?

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.

Why Are These Changes Important?

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.

How Cardholders Can Adapt

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.

Final Takeaway

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.