SBI the country's second largest credit card issuer has announced some changes in how it used to calculate the Minimum Amount Due (MAD) for its credit card users.
The definition for Minimum Amount Due (MAD) is going to be revised and the changes are expected to come into effect from March 15, 2024
While the calculation above appears the same, the main changes are in the cases where the 5% amount is less than the Finance Charges
That is - In case 5% of (Finance Charge + Retail Spends and Cash Advance) is less than Finance Charges, then the MAD calculation will be Total GST + EMI amount + 100% of Fees/Charges + 100% of Finance Charges + Overlimit Amount (if any)
Although this will not affect the total bill amount, the MAD is likely to witness a little spike but that may not bother the SBI credit card users because it won't add any additional amount in the final bill
P.S :- As per SBI, they have also sent emails to the credit card holders informing about the changes along with the current MAD calculation regime and the changes proposed thereof
The definition for Minimum Amount Due (MAD) is going to be revised and the changes are expected to come into effect from March 15, 2024
Current MAD Method
Existing MAD Calculation = Total GST + EMI amount + 100% of Fees/Charges + 5% of [Finance Charge (if any) + Retail Spends and Cash Advance (if any)] + Overlimit Amount (if any).Revised MAD Method
Revised MAD Calculation = Total GST + EMI amount + 100% of Fees/Charges + 5% of [Finance Charge(if any) + Retail Spends and Cash Advance (if any)] + Overlimit Amount (if any).While the calculation above appears the same, the main changes are in the cases where the 5% amount is less than the Finance Charges
That is - In case 5% of (Finance Charge + Retail Spends and Cash Advance) is less than Finance Charges, then the MAD calculation will be Total GST + EMI amount + 100% of Fees/Charges + 100% of Finance Charges + Overlimit Amount (if any)
Although this will not affect the total bill amount, the MAD is likely to witness a little spike but that may not bother the SBI credit card users because it won't add any additional amount in the final bill
P.S :- As per SBI, they have also sent emails to the credit card holders informing about the changes along with the current MAD calculation regime and the changes proposed thereof
