PhonePe SBI Card SELECT BLACK Review 2026: 10% Cashback, Rewards & Benefits

SBI Card already has the SBI Cashback Card, which remains one of the better options if most of your spending is online. The PhonePe SBI Card SELECT BLACK is aimed at a slightly different user, with the best rewards reserved for spends made through PhonePe.

You get 10% rewards on eligible PhonePe spends such as utility bills, recharges, travel and insurance, while other eligible online spends earn 5%. Scan & Pay transactions through PhonePe earn 1%, and you also get 1% on regular eligible card spends.

The reward rates still look very good, but the card is not as generous as it was at launch. SBI Card reduced the monthly reward caps from 1 July 2026, which means you now need to use the card more selectively. For someone who already uses PhonePe regularly for bills and payments, there is still decent value here.

PhonePe SBI Card SELECT BLACK at a Glance

Fees and Charges

The joining fee is ₹1499 + GST, which works out to roughly ₹1769. In return, you get a ₹1500 PhonePe e-Gift Voucher after paying the membership fee. So the welcome benefit covers most of the first-year fee, though you are still effectively paying around ₹269 after GST.

From the second year onwards, the same ₹1499 + GST renewal fee applies. It is waived if you spend ₹3 lakh or more in the previous card membership year.

Rewards

The reward rates on the PhonePe SBI Card SELECT BLACK still look very good but the lower monthly caps have taken away some of the shine. From 1 July 2026, the 10% PhonePe reward bucket has also been split between insurance and other eligible PhonePe spends.

Reward Points are applicable only on transactions of ₹100 or more.

The 10% PhonePe bucket is still the main reason to get this card. Recharges, utility bills, bill payments and travel can earn up to 1500 RP per month, while insurance payments through PhonePe get a separate cap of 500 RP.

The 5% reward rate on online spends is useful too but the cap is now just 1000 RP per month. That means you can earn 5% only on the first ₹20,000 of eligible online spends every month.

Regular eligible spends earn 1%. Scan & Pay transactions through PhonePe also earn 1% but UPI spends made outside PhonePe do not earn any rewards.

Reward Exclusions

There are quite a few exclusions now. Fuel, wallet loading, rent, government payments, education, digital gaming, tolls, jewellery and gifts/souvenirs do not earn reward points. EMI transactions and cash withdrawals are excluded as well.

Utilities and insurance are worth noting separately. Pay them outside PhonePe and you do not earn rewards. Pay through PhonePe and they can earn 10%, subject to the respective monthly caps.

How Much to Spend to Maximize Monthly Rewards?

Here is what you need to spend every month to fully use each reward bucket:

• ₹15,000 on PhonePe recharges, utilities, bill payments and travel for 1500 RP
• ₹5000 on insurance through PhonePe for 500 RP
• ₹20,000 on eligible online spends for 1000 RP
• ₹2 lakh on other eligible spends for 2000 RP

So yes, the theoretical maximum is 5000 RP or ₹5000 in a month.

In practice, though, we would ignore the 2000 RP available on regular spends because you need to spend ₹2 lakh at a 1% reward rate to get there.

The sweet spot is much simpler. Use the card for the 10% PhonePe categories and 5% online spends. A monthly spend of ₹40,000 across these buckets can earn up to 3000 RP or ₹3000 back. That is the part of the card that still makes sense after the July 2026 changes.

Milestone Benefit

Spend ₹5 lakh in a card membership year and you get a Yatra e-Voucher worth ₹5000.

It is a decent extra if your regular spends on the card naturally cross ₹5 lakh. We would not move another ₹2 lakh of spends to this card just to reach the milestone after completing the ₹3 lakh annual fee waiver. That spend may earn better rewards elsewhere.

Reward Points Redemption

The cashback is credited as Reward Points, with 1 RP = ₹1. These points can be redeemed against the card statement, so there is no loss in value while redeeming them.

Redemption is fairly straightforward and makes the reward structure easy to understand. Whatever you earn in Reward Points is effectively the same value in rupees.

Airport Lounge Access Benefit

The card continues to offer 4 complimentary domestic airport lounge visits every year, limited to one visit per quarter. There is no spend condition for accessing these visits, which is good to see considering how common spend-based lounge access has become on credit cards.

Fuel Surcharge Waiver

Get a 1% fuel surcharge waiver on transactions between ₹500 and ₹4000, capped at ₹250 per statement cycle.

Pros and Cons of PhonePe SBI Card SELECT BLACK

Pros

• 10% rewards on eligible PhonePe spends
• 5% rewards on eligible online spends
• 1 RP = ₹1 for statement credit
• ₹1500 PhonePe welcome voucher
• 1% rewards on Scan & Pay through PhonePe
• 4 domestic lounge visits every year

Cons

• Lower monthly reward caps from July 2026
• 5% online rewards capped at 1000 RP per month
• Several common categories are excluded
• Utilities and insurance earn rewards only through PhonePe
• Regular spends earn just 1%

The PhonePe SBI Card SELECT BLACK is still a good card, but the July 2026 changes have reduced its overall value.

The card makes most sense for people who already use PhonePe regularly. The 10% reward rate on eligible PhonePe spends is still the main highlight, while 5% on online spends is useful up to the monthly cap.

Beyond these categories, there is not much reason to use the card. Regular spends earn only 1%, and the exclusions have also gone up. So the best way to use this card is to stick to the 10% and 5% categories and use another card for the rest.

Should you get the PhonePe SBI Card SELECT BLACK?

The PhonePe SBI Card SELECT BLACK still makes sense if you use PhonePe regularly for utility bills, recharges, travel or insurance. The 10% reward rate on these spends is the main reason to get the card.

You also get 5% rewards on eligible online spends, though this is now capped at 1000 RP per month. Scan & Pay through PhonePe and other eligible spends earn 1%.

The ₹1499 + GST annual fee is reasonable considering the ₹1500 PhonePe welcome voucher in the first year. From the second year, the fee is waived on ₹3 lakh annual spend. I would not spend extra just for the waiver, but it is useful if you naturally reach that level.

The card also comes with 4 domestic lounge visits every year without any spend condition.

Overall, this is no longer the all-round cashback card it was at launch. The lower monthly caps and additional exclusions have reduced its value. But if most of your PhonePe spends fall into the 10% categories and you can also make use of the 5% online bucket, the card can still work very well.

Frequently Asked Questions