More 2026 devaluations: the SBI Cashback card

As predicted in my #CreditCard analysis, #2026 continues to be the year of devaluations.
Almost all major banks have announced some form of devaluation, including HDFC, ICICI, Amex!
The latest entrant in the list #SBI #Cashback Card.

After last year’s tweak (5% cashback capped at ₹5,000 for Online purchases, for offline transactions, one can earn unlimited 1% CB), another round is here.
The new structure from 1st April 2026:
• 5% cashback capped at ₹2,000 (online spends)
• 1% cashback capped at ₹2,000 (offline spends)
• Overall cashback capped at ₹4,000 per statement cycle
Which effectively means:
👉 5% only up to ₹40,000 online spends per statement.
👉 Beyond that, no incremental reward advantage.
For most users spending within ₹40k online monthly, the impact may be minimal. The card continues to offer good value, the best part, CB gets added to the statement, so no need to track or worry about Points redemption! If you are looking forward to applying for the card, do click the referral link here -
https://lnkd.in/gdqXdnt8

Some of the uses, where the limit would pinch!
• Big-ticket gadget purchases
• High-value festival spends
• One-off lifestyle expenses

So why are banks doing this?
Because rewards are no longer “breakage-driven.”
Earlier:
- Many users didn’t optimise rewards
- Points expired (not applicable for CB cards)
- Redemptions were inefficient
Now:
- Users track multipliers.
- Stack offers.
- Hold multiple cards.
- Maximise every %.

The smarter the user becomes, the thinner the bank’s margin gets!
When a rewards product starts losing money, banks have only three levers:
1️⃣ Reduce benefits
2️⃣ Increase fees
3️⃣ Tighten eligibility

If you hold SBI Cashback, does this change your usage pattern?

CC 2025 review and what one can expect in 2026? https://lnkd.in/gzcgdKgG

Recent post on #HDFCInfinia -
https://lnkd.in/ggZtT6fR

If you're looking for the right Credit Card for yourself, feel free to reach out to me.