# PhonePe SBI Card SELECT BLACK Devalued: Insurance Rewards Capped at ₹5,000 Spend, Online Rewards Cut by 50% > PhonePe SBI Card has announced a series of reward program revisions for its SELECT BLACK credit card, effective July 1, 2026. The changes primarily impact reward point caps on insurance and online spe... - Source: https://www.creditkeeda.com/news/phonepe-sbi-card-select-black-devalued-insurance-rewards-capped-at-5000-spend - Publisher: Creditkeeda - Section: News - Author: Creditkeeda - Published: 2026-05-29 - Last updated: 2026-05-29 - Tags: credit-cards, sbi, phonepe, devaluation --- PhonePe SBI Card has announced a series of reward program revisions for its SELECT BLACK credit card, effective July 1, 2026. The changes primarily impact reward point caps on insurance and online spending, while also introducing new categories that will no longer earn reward points. ![1000204676](https://res.cloudinary.com/dyougagen/image/upload/v1780062409/creditkeeda-content-images/1000204676-1780062409344.jpg) While the core reward structure remains unchanged, the revisions significantly reduce the earning potential for users who rely on the card for insurance premiums, online shopping, education fees, and certain UPI transactions. ### Reward Point Caps Revised **Insurance Spends via PhonePe** Currently, cardholders can earn up to 2,000 Reward Points (RPs) per month on eligible PhonePe transactions, including insurance payments. **From July 1, 2026:** - Insurance spends will be capped at 500 RPs per month. - Other eligible PhonePe spends will be capped at 1,500 RPs per month. Since the card offers 10% rewards on eligible PhonePe transactions, the new insurance cap will be exhausted after just ₹5,000 of insurance payments in a month. Under the previous structure, users could earn the full 2,000 RPs by spending ₹20,000 on insurance through PhonePe. The revised cap effectively reduces the rewardable insurance spend limit from ₹20,000 to ₹5,000 per month, representing a 75% reduction. **Online Spend Reward Cap Reduced by 50%** The monthly reward cap on eligible online spends is also being reduced. Existing: 2,000 RPs per month New: 1,000 RPs per month Given the card's 5% reward rate on eligible online transactions, cardholders could previously earn rewards on up to ₹40,000 of online spending each month. From July 2026 onwards, rewards will stop accruing after ₹20,000 of eligible online spends in a month. For users who frequently use the card for e-commerce purchases, this represents a substantial reduction in reward earning potential. ### New Reward Exclusions Introduced In addition to the existing exclusions, SBI Card has added several new categories that will no longer earn reward points. **The newly excluded categories include:** - Tolls and Bridges (MCC 4784) - Gifts and Souvenirs (MCC 5947) - Jewellery (MCC 5094, 5944) - Educational Institutions (MCC 8220) - Utilities paid outside the PhonePe app (MCC 4900, 4814, 4899) - Insurance paid outside the PhonePe app (MCC 5960, 6300, 6380) - UPI transactions made through non-PhonePe applications ### What Changes for Cardholders? The most notable impact is on insurance spending. Large insurance premium payments were one of the easiest ways for users to maximize the card's monthly reward cap. Going forward, only the first ₹5,000 of eligible insurance spending via PhonePe will earn rewards each month. The reduction in the online spending cap will also affect users who regularly spend more than ₹20,000 per month on e-commerce platforms. Additionally: - Education fee payments will no longer earn rewards. - Jewellery purchases will no longer earn rewards. - Utility bill payments made directly on merchant websites or apps will no longer earn rewards. - Insurance premiums paid directly on insurer websites or apps will no longer earn rewards. - UPI transactions using the card through apps such as Google Pay or Paytm will no longer earn rewards. **Increased Dependence on the PhonePe Ecosystem** A notable aspect of the revision is the growing emphasis on routing transactions through PhonePe. For categories such as utilities and insurance, users will need to use the PhonePe app to remain eligible for rewards. Payments made directly through merchant channels will not earn reward points. Similarly, UPI transactions performed using other UPI applications will cease to earn rewards, further strengthening the card's integration with the PhonePe ecosystem. ### Final Thoughts The upcoming revisions do not change the headline reward rates of the PhonePe SBI Card SELECT BLACK. However, the lower caps and expanded exclusions substantially reduce the maximum rewards that many cardholders can earn each month. The biggest impact will be felt by users who use the card for insurance premiums, large online purchases, education fee payments, and UPI transactions across multiple apps. For users whose spending is concentrated within the PhonePe ecosystem and remains within the revised caps, the card may continue to offer reasonable value, albeit at a lower level than before.