It was a great year with the SBI Elite card, issued to me about a year ago against an FD. I was fortunate to receive a 3% value-back offer before they devalued the SBI Signature card, and I ultimately earned around Rs. 18,000 in cashback through that campaign. I also used their BookMyShow offer frequently and was satisfied with the convenience. Their customer service was generally smooth, and overall I had a positive experience.
SBI Elite Credit Card Renewal:
When the renewal month arrived, I was surprised to see a renewal fee of Rs. 5,000 plus tax. Given that I already have six other cards in my wallet (listed here) with comparable or better reward rates, paying this fee seemed unreasonable. I had hoped to get a waiver because I had spent a substantial amount—over Rs. 5 lakh—in the previous year.
- Renewal Fee: Rs. 5,000 + tax
My late SBI Signature Credit Card (now called Elite)
It’s common for credit card issuers to waive renewal fees for high-spending customers, but that wasn’t my experience with SBI.
Closing SBI Credit Card Account:
One night I decided to close the card and sent an SMS with the text PROBLEM to 9212500888. This method has worked for me in the past. I also noticed they had added a toll-free number recently, and I received a callback early the next morning. The conversation went like this:
- SBI Agent: How can I help you, sir?
- Me: I would like to close my card.
- SBI Agent: Sure. May I know the reason, sir?
- Me: You’re charging a renewal fee but not offering any benefit in return. It feels unfair.
- SBI Agent: You receive milestone points, sir.
- Me: But I paid a joining fee to get the benefits. What renewal benefit applies here?
- SBI Agent: Sorry sir, that’s what we have for now.
- Me: Okay, please close the account.
- SBI Agent: Are you sure? Shall I proceed to close your card account, sir?
- Me: Yes, please.
- SBI Agent: OK sir, I’ve taken up the request and the account will be closed shortly.
- (I was half-asleep and thinking: WTH—no retention team, nothing? I asked calmly…)
- Me: So… will I get any callback from another team to reconfirm?
- SBI Agent: No sir, your card account is already closed. You may cut your card into pieces. Anything else I can assist you with?
- Me: No, thanks.
The account was closed quickly—credit to SBICARD for making closures far faster than openings. I hadn’t asked specifically about a waiver during this call, but I had already tried to get a reversal a few days earlier and was told a waiver wouldn’t be granted if I chose to close the card.
I also attempted escalation through a branch, but that yielded no change. It’s puzzling: if I closed the card and reapplied, I might regain joining benefits, but that could hurt my credit score. I don’t see how that logic benefits the issuer in the long run.
A Note to the SBI Card Team:
Overall my experience was good, but the ending was disappointing. There are a couple of basics that other premium card issuers, such as American Express, typically follow and SBI could improve on:
- Retention Team: Premium cardholders who spend heavily are valuable and expensive to acquire—acquisition costs for such customers likely exceed the renewal fee. A proactive retention team should be in place to negotiate and retain high-spending customers rather than allowing them to close accounts without any counteroffer.
- Renewal Benefits: Most cards that charge a renewal fee also attach clear renewal benefits—lounge access, priority services, or comparable perks. The Elite card charges a substantial renewal fee but doesn’t provide a compelling renewal benefit in return. That’s a serious shortcoming.
I hope the card design team at SBI takes this feedback into consideration. For now, let my SBI Elite card rest in peace.
Time to Shift the Spending to HDFC:
I’m planning to move my spending from SBI Elite to the HDFC Diners Club Black card to make use of its one-on-one movie offers and other perks. I’ll also hope for an eventual upgrade to HDFC’s top-tier offering, the Infinia.
Let’s see what the next year brings.
How has your experience been with SBI card renewals? Were you offered a waiver? Share your details in the comments below.