Synopsis: The PhonePe SBI Card SELECT Black and PURPLE card will have reduced cap limits for rewards, along with new spend exclusions starting July 1, 2026. This article shows the three alternative SBI Cards that cardholders may consider after the latest devaluation.
PhonePe SBI Card SELECT Black & PURPLE Credit Cards have been rolled out as some good cashback-based cards where users could earn accelerated points based on PhonePe spends, online purchases, utility payments, insurance payments, and UPI spends. Nonetheless, it has recently been announced by SBI that they will be revising the rewards system again starting July 1, 2026.
What Is Changing From July 1, 2026?
According to the revised reward structure shared with cardholders, several spending categories will either see lower reward caps or become completely ineligible for reward points.
- Major Changes for PhonePe SBI Card SELECT Black:
- Online spending reward cap reduced from 2,000 reward points per month to 1,000 reward points per month.
- Insurance spent through PhonePe will now have a separate cap of only 500 reward points per month.
- Other eligible PhonePe spends will be capped at 1,500 reward points per month.
- Major Changes for PhonePe SBI Card PURPLE:
- Online spending reward cap reduced from 1,000 reward points to 750 reward points per month.
- Insurance spends via PhonePe capped at 250 reward points per month.
- Other eligible PhonePe spends capped at 750 reward points per month.
- Categories That Will No Longer Earn Reward Points:
- Educational institution payments
- Tolls and bridge payments
- Jewellery purchases
- Gift cards and gift vouchers
- Utility payments made outside PhonePe
- Insurance payments made outside PhonePe
- UPI transactions made outside PhonePe
These exclusions affect users who were maximizing rewards through insurance premium payments, utility bills, and large online transactions. Alternatively, you can select these SBI Credit Cards for better perks.
1. SBI Cashback Card
- Joining Fee/Annual Fee: ₹999 + GST
- Fee waiver: Annual Spend ₹200,000/year
- Benefits:
- 5% cashback on online spends without any merchant restrictions
- 1% cashback on offline spends
- 1% Fuel Surcharge Waiver on every transaction between ₹500 and ₹3000 at all petrol stations. Maximum ₹100 per statement cycle
- Cashback is not applicable for spending on utilities, insurance, fuel, rent, wallets, education, jewelry, railways, etc.
- Cashback is credited automatically within 2 days of the next statement.
- The maximum cashback that can be earned per statement cycle is capped at ₹4,000
- Most purchases can be converted into EMIs using SBI Card’s Flexipay facility (cashback may not be earned on transactions converted to EMI)
To apply for the card, please visit the Official Website
2. SimplyCLICK SBI Card
- Joining Fee/Annual Fee: ₹499 + GST
- Fee waiver: Annual Spend ₹1 lakh
- Benefits:
- Amazon Gift Card worth ₹500 on payment of joining fee.
- 10X reward points on partner merchants such as Amazon, BookMyShow, Cleartrip, Netmeds, Apollo 24×7, Dominos, and IGP.
- 5X reward points on all other eligible online spends.
- ₹2,000 milestone e-voucher on annual spends of ₹1 lakh and ₹2 lakh (e-vouchers brands on Cleartrip and yatra
- 1% Fuel Surcharge Waiver on every transaction between ₹500 and ₹3000 at all petrol stations. Maximum ₹100 per statement cycle
To apply for the card, please visit the Official Website
3. SBI Card ELITE
- Joining Fee/Annual Fee: ₹4,999 + GST
- Fee waiver: Annual spends of ₹10 lakh
- Benefits:
- Complimentary e-gift vouchers worth ₹5,000 as a welcome benefit
- Complimentary movie tickets worth up to ₹6,000 annually
- Complimentary Priority Pass membership
- 6 international lounge visits annually (maximum 2 per quarter)
- 2 domestic lounge visits every quarter
- Complimentary one-year Club ITC Silver Tier membership
- 1% Fuel Surcharge Waiver Maximum ₹250 per statement cycle
- Milestone benefits:
- Get 10,000 Bonus Reward Points on reaching ₹3 lakh and ₹4 lakh annual spends.
- Get 15,000 Bonus Reward Points on reaching ₹5 lakh and ₹8 lakh annual spends.
- Earn up to 50,000 bonus reward points annually, equivalent to approximately ₹12,500 in value
- Reward Structure:
- 5X reward points on dining, grocery, and departmental store spends
- 2 reward points per ₹100 on other online spends
- 2 reward points per ₹100 on international transactions
To apply for the card, please visit the Official Website
Which SBI Card Alternative Looks Best?
- SBI Cashback Card: Ideal for those who require simplicity when earning rewards, providing them 5% cashback on their eligible online spends regardless of the merchant.
- SBI SimplyCLICK Credit Card: Suitable for budget-conscious online shoppers, with accelerated reward points on partner brands, a low annual fee, and milestone voucher benefits.
- SBI Card ELITE: Best choice for people spending a lot and traveling frequently, as they would receive many premium offers like access to airport lounges and movie benefits among others.
Final Thoughts
The devaluation of July 2026 will affect the earning capacity of the PhonePe SBI Card SELECT Black and PURPLE cards, owing to low limits and exceptions imposed. The choice of the best option will depend on individual needs and circumstances. In most cases, however, SBI Cashback appears to be the best, followed by SBI SimplyCLICK and SBI Card ELITE.
Written By Ameet S
