Cashback

When launched in September 2022, the Cashback SBI Credit Card came across as one of India’s best SBI Credit Cards and the best cashback credit card. Offering a value-back of 5% across all online transactions without any merchant restrictions, this card surpassed the benefits of 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 a nil joining fee, which attracted more consumers. 

Lately, however, the SBI Card has devalued some of the benefits offered by the Cashback SBI Card. These new changes are in effect for existing and new credit card users. Read on to learn 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?

Particulars	Previous feature	Revised as effective from May 2023
Joining fee	Nil (up till March 2023)	Rs. 999
Cashback on offline shopping	1% cash back on offline transactions No cashback on utility bill payments	1% cashback on offline transactions No cashback on utility bill payments
Excluded cashback categories	Fuel transactions, merchant EMI transactions, rent payments, wallet loading, cash advances, balance transfers, Flexipay or Encash facility	Fuel transactions, merchant EMI transactions, rent payments, wallet loading, cash advances, balance transfers, Flexipay or Encash facility, jewelry purchases, educational transactions, institutional transactions, utilities, insurance payments, gifting, railway transactions
Maximum cashback per month	Rs. 10,000 on accelerated category	Rs. 5,000, including all categories
Lounge Access	4 complimentary lounge access per year	No complimentary lounge access

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

• Even after the devaluation, the 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, it is 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 a big drawback, as they previously earned 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 spending should opt for select credit cards designed to offer benefits in 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 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 does not offer 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 for 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 comparatively lower annual fees of Rs. 499 and Rs. 500, respectively.
  
  Thus, this devaluation is a drawback you should consider, especially if you travel via airlines occasionally 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 with getting no lounge access.
  

On a concluding note, understand that you should check the revised features offered if you plan to apply for a Cashback SBI Credit 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.