PhonePe recently expanded its co-branded credit card portfolio through partnerships with HDFC Bank and SBI Card. Among these, the SBI PhonePe Credit Cards were considered attractive options for users looking to earn rewards on everyday spending, particularly utility bill payments. Following the devaluation of the Airtel Axis Credit Card, many cardholders viewed the PhonePe cards as one of the better alternatives in this segment.
However, SBI Card has now announced a revision to the rewards program for its PhonePe credit cards. The changes include a revised rewards capping structure along with the addition of several new reward exclusions, reducing the overall earning potential for some users.
Utility bills, insurance, and jewelry payments have increasingly become a target for reward restrictions across the credit card industry. Since these are recurring and high-volume transactions, issuers often introduce caps or exclude them from rewards altogether to manage costs. The latest changes to the SBI PhonePe Credit Cards are another example of this ongoing trend.
Revised Monthly Reward Points Capping
PhonePe SBI Card SELECT BLACK
| Spend Type | Existing Cap | New Cap |
| Eligible PhonePe Spends | Max. 2,000 Reward Points per Month | Max. 500 Reward Points on Insurance Spends + Max. 1,500 Reward Points on Other Eligible Spends |
| Eligible Online Spends | Max. 2,000 Reward Points per Month | Max. 1,000 Reward Points per Month |
The devaluation is more noticeable on online spends, where the monthly reward cap has been reduced by 50%. Additionally, SBI Card has introduced a separate cap on insurance transactions made through PhonePe, limiting the rewards that can be earned from this category.
PhonePe SBI Card PURPLE
While the overall cap on eligible PhonePe spends remains 1,000 Reward Points per month, SBI Card has introduced a separate sub-limit of 250 Reward Points for insurance spends. Additionally, the cap on eligible online spends has been reduced from 1,000 Reward Points to 750 Reward Points per month.
| Spend Type | Existing Cap | New Cap |
| Eligible PhonePe Spends | Max. 1,000 RPs | Max. 250 RPs on Insurance Spends + Max. 750 RPs on Other Eligible Spends |
| Eligible Online Spends | Max. 1,000 RPs | Max. 750 RPs |
Reward Exclusions
Both the SBI Card PhonePe Credit Card and SBI Card PhonePe SELECT Credit Card will no longer offer reward points on spends made in the following categories. These exclusions are in addition to the existing reward point exclusions already applicable on the cards:
- Toll and Bridge Payments
- Gifts and Souvenirs
- Jewellery Purchases
- Educational Institution Payments
- Utility Bill Payments made outside the PhonePe App
- Insurance Premium Payments made outside the PhonePe App
- UPI Transactions made outside the PhonePe App
This change is expected to impact users who regularly use their cards for education, insurance, utility, and jewelry-related spends, as such transactions will no longer contribute towards reward earnings.
Bottom Line
It seems that, slowly but steadily, credit card issuers are continuing to restrict benefits across several cards. What makes this particularly surprising is that these changes are often introduced not long after a card is launched. It raises a valid question: why don’t banks launch more sustainable reward structures from the outset instead of revising benefits midway through a card’s lifecycle?
That said, the SBI PhonePe Credit Cards remain rewarding options even after this devaluation. However, the latest changes reduce the ability to earn rewards on online spends and insurance payments, two categories that were among the key reasons many users opted for these cards in the first place. The list of reward exclusions has also been expanded, further limiting reward earning opportunities.
The revised reward structure and exclusions will come into effect from 1st July 2026. Existing cardholders should take note of these changes and adjust their spending strategy accordingly.