Cashback SBI Card: From eligibility criteria to benefits; all you need to know

Introducing the Cashback SBI Card, a recent addition to the SBI Card lineup. True to its name, this credit card offers enticing cashback rewards on every transaction. It stands out for its simplicity, no need to track points or navigate redemption processes. The annual fee is ₹999, but spending ₹2 lacs or more in the preceding year grants a waiver.

Enjoy the perks of earning up to 5% cashback on all online and offline purchases effortlessly. The cashback is conveniently credited directly to your account. Furthermore, the card comes with additional benefits like a fuel surcharge waiver. Delve into our comprehensive Cashback SBI Card review to explore its myriad features and advantages.

Eligibility criteria

The primary cardholder must be aged between 21 and 65 years. A stable and verifiable source of income is required. A favourable credit history is essential for the applicant.

Fees

• Enrollment fee: ₹999 + applicable taxes.
• Annual fee: ₹999 + GST (approximately ₹1180 per year) from the second year onward. Waived upon spending over ₹2 lacs.

Rewards and benefits

• 5% cashback on online spends with capping of ₹5,000 per billing statement per month.
• 1% cash back on offline spends with no capping.

Cashback is not applicable for the following transactions - rent payments, wallet reloads, merchant EMIs, jewellery purchases, school/education fees, utility/insurance payments, gift cards/vouchers, and train tickets.

The cashback limit is set at ₹5000 per month/billing cycle. Once this threshold is reached, whether through online or offline purchases combined, no further cashback will be accrued on additional spending.

Cashback earned on the card will automatically reflect in your SBI Card account within two days of your next statement generation.

No lounge access.

Other key benefits & charges

Fuel surcharge waiver: Enjoy a 1% surcharge waiver on transactions ranging from ₹500 to ₹3,000, with a maximum waiver capped at ₹100 per statement cycle.

Foreign currency markup: The markup stands at 3.5% plus GST, approximately 4.13%.

Interest rates: A monthly interest rate of 3.5%, equivalent to an annual rate of 42%.

How is the 5% cashback calculated for Cashback SBI Card?

The Cashback SBI Card doesn't directly provide a flat 5% cashback on spends. Instead, the calculation involves a distinct approach. It grants 1% cashback for regular spending and a 4% bonus for offline expenditures. Both these percentages are individually computed and rounded down to the nearest integer.

For instance, if you spend ₹2345 and qualify for 5% cashback:

• 1% of ₹2345 equals ₹23.45, rounded down to ₹23.
• 4% of ₹2345 equals ₹93.80, rounded down to ₹93.

Thus, the total cashback would be ₹116, which equates to approximately 4.94%. This methodology is detailed in the Cashback SBI Card's terms and conditions booklet.

Cashback redemption

The accrued cashback is automatically credited to the statement every month, typically within 2 working days of statement generation. Additionally, SBI Card sends a notification confirming the cashback credit upon completion.

There are no redemption charges associated. However, SBI Card does not provide a transaction-wise breakdown of cashback in the statement. Hence, to determine the eligible cashback, manual calculation based on the provided cashback structure is necessary.

In conclusion, the Cashback SBI Card from SBI Card offers lucrative cash back benefits, making it an appealing choice for users. This card provides up to 5% cashback on online expenditures and 1% on offline purchases, facilitating instant savings on transactions. However, the card's annual fee is slightly higher, yet justifiable due to the accompanying benefits, especially with the annual fee waiver in place.

Despite the depreciation impacting the card's utility, it remains a favourable option for individuals frequently transacting with online merchants such as Flipkart, Amazon, and others. While co-branded credit cards for Flipkart, Myntra, and Amazon offer 5% cashback specifically with them, the Cashback SBI Card stands out by encompassing numerous retailers within this benefit, making it a singular choice even with the fee payment.

Yet, it's noteworthy that the SBI Card could have enhanced the appeal by including at least a couple of complimentary airport lounge visits with the Cashback card. Considering its ₹999 fee, such inclusions, possibly with certain spend-based conditions as practised by other issuers, could have added significant value for users.

Rohit Gyanchandani is Managing Director at Nandi Nivesh Private Limited