Feature Devaluation on Cashback SBI Card- Is it still the Best Cashback Card in India?

When launched in September 2022, Cashback SBI Credit Card came across not only as one of the best SBI Credit Cards but also as the best cashback credit card in India. Offering a value-back of 5% across all online transactions without any merchant restrictions, this card surpassed the benefits on other popular cashback credit cards like Axis Bank Ace, Flipkart Axis and Amazon Pay Credit Card. Cashback SBI Credit Card, thus became a big hit due to its no merchant restriction model. Under a promotional offer, it was also offered at nil joining fee, which attracted more consumers. 

Lately, however, SBI Card has devalued some of the benefits offered on the Cashback SBI Card. These new changes are in effect for both existing and new credit card users. Read on to know what has changed for existing users, and if you should apply for this card after the devaluation.

                  Revised features as effective from May, 2023 – What has changed?

Verdict on Devaluation- Is the Card still a Good Choice?

• Even after the devaluation, Cashback SBI Credit card remains a good option to consider, if earning a high cashback is your concern. The card continues with the feature of offering 5% cashback on online shopping without any merchant restrictions. Therefore, undoubtedly a good choice for online shoppers who do not have merchant or brand preferences. Though the maximum monthly capping has been revised and reduced from Rs. 10,000 to Rs. 5,000, it still is one of the highest among other similar cards such as Axis Ace or HSBC Cashback. 

• The exemption of utility bill payment transactions from cashback is not that big a drawback, as it was previously earning only 1%. Most credit cards, including some premium options like HDFC Diners Club Black and IndusInd Legend, do not offer any rewards on utility bill payments. Those who wish to save on utility spends should opt for the select credit cards that are designed to offer benefits on this category. One such card is Axis Ace.
  
• Cashback SBI Card was previously available at zero joining fee, making it free for the first year, but now it will come at a joining fee of Rs. 999. The fee is higher than most credit cards in this league, however, with smart usage, one can easily earn more than the fee charged as cashback. Also, at a joining fee of Rs. 999, a welcome benefit or joining bonus would have been an added advantage.
  
• What feels like a major devaluation on this card is the access to airport lounges. The card charges a comparatively high fee but still does not offer even domestic lounge access. If you compare it to other cashback cards, the demerit seems high. For instance, the HDFC Millennia Credit card offers 8 complimentary domestic lounge access, at a fee of Rs. 1,000. Some other cashback cards like Flipkart Axis Bank and Axis Ace Credit card offer 4 domestic lounge access in a year, even at a comparatively lower annual fees of Rs. 499 and Rs. 500, respectively.
  
  Thus this devaluation is a drawback you should keep in mind, especially if you travel via airlines, once in a while and don’t have another credit card to serve this purpose. You can, however, ignore this if you are not an airline traveler and are thus comfortable in getting no lounge access.
  

On a concluding note, understand that if you are planning to apply for a Cashback SBI Credit Card, it is better to check the revised features offered on the card. If your search is limited to finding a good ‘cashback credit card’, then Cashback SBI Credit Card could serve you the best, especially if your online spends are not limited to any merchant or brand. You should, however, consider other options if you want all-rounder credit card benefits or cashback benefits specific to brands or categories.

Related Read: How Credit Card Consolidation Works