PhonePe SBI Card PURPLE Review: 3% Back on PhonePe, Easy Fee Waiver

The PhonePe SBI Card PURPLE is a co-branded credit card from SBI Card and PhonePe, built for people who do most of their spending through the PhonePe app. It earns Reward Points at a flat 1:1 value (1 Reward Point = Re. 1), with accelerated rates on PhonePe and online transactions.

It comes on Visa or RuPay (your choice at application), costs ₹499 a year with a straightforward fee waiver at ₹1 lakh annual spend, and redeems simply as vouchers or cash. The RuPay variant can also be linked to UPI, which makes it a natural fit for PhonePe users who want to earn rewards on UPI transactions too.

Fees and What You Get

The welcome benefit is a PhonePe Gift Card worth ₹500 on card issuance, which effectively covers your first year's joining fee. From year 2, the annual fee of ₹499 + GST gets reversed if you've spent ₹1 lakh or more in the previous membership year. The fee is charged first and then reversed, so don't be surprised to see it on your statement before it disappears.

There is no separate renewal benefit beyond the fee waiver itself.

How You Earn Reward Points

Since 1 Reward Point equals Re. 1, the effective return is 3% on PhonePe, 2% on online, and 1% on everything else. That 3% PhonePe rate is the card's main selling point.

But there are monthly caps. You can earn a maximum of 1,000 Reward Points per month on PhonePe spends (that's ₹1,000 back on roughly ₹33,333 of PhonePe spend). The online tier is also capped at 1,000 Reward Points per month. After hitting these caps, additional spend in those categories earns at the base 1% rate. The base tier has no cap mentioned.

Points are credited to your card account after statement generation. Reward Points expire 3 years from the date they're earned, with no activity-based reset.

What Does NOT Earn Points

The exclusion list on this card is long. Eleven categories earn zero points:

The good news: most of these excluded categories (wallet, fuel, rent, utilities, insurance, jewellery, education, government) still count toward milestone thresholds. So they help you hit the ₹1 lakh fee waiver and ₹3 lakh Yatra voucher even though they earn zero points.

Milestone Benefits

The ₹1 lakh milestone is the one most cardholders will target. It makes the card essentially free to hold from year 2 onwards. At roughly ₹8,300 per month in eligible and non-eligible spends combined, that's achievable for most regular spenders.

The ₹3 lakh Yatra voucher is a nice bonus if you hit it, but it's not the reason to get this card.

How to Redeem Your Points

The redemption is simple and transparent. Each point is worth exactly Re. 1, whether you redeem as vouchers or cash. What you earn is what you get.

Lounge Access

None. This is an entry-level co-brand card and does not include any lounge access benefits.

Fuel Surcharge Waiver

Fuel spends don't earn points, but you save on the surcharge.

Other Surcharges

These are standard SBI Card surcharges that apply across most of their portfolio. On a card where these categories already earn zero points, the surcharges make these transactions doubly unrewarding.

Forex and International Use

The foreign currency markup is 3.5%, with Dynamic Currency Conversion also at 3.5%. There is no accelerated earning tier for international spends; the base rate of 1 RP per ₹100 (1%) applies. If you picked the Visa variant, exchange rates are determined by the Visa network. RuPay cards have limited international acceptance, so the Visa variant is the better choice if you travel abroad.

This is not a card for international spending. The 3.5% markup with only 1% return means you're losing 2.5% on every foreign transaction.

Eligibility and Support

You need to be an Indian resident, aged 18 to 65. SBI Card does not publicly disclose minimum income requirements for this card. Documents required: PAN card or Form 60, income proof, and address proof.

Support: Phone at 1860 180 1290 or 39 02 02 02 (prefix your city's STD code). The SBI Card app and website are available, along with the ILA chatbot on sbicard.com.

The Verdict

The PhonePe SBI Card PURPLE does one thing well: it gives you 3% back on PhonePe spends with zero complexity. The points are worth exactly Re. 1 each, redeemable as vouchers or cash. No conversions, no transfer partners to think about. The ₹499 annual fee is easy to waive at ₹1 lakh spend, and the ₹500 welcome gift card covers year one. And if you pick the RuPay variant, you can link the card to UPI and earn on PhonePe UPI transactions too.

But the limitations are real. The monthly caps of 1,000 RP on PhonePe and 1,000 RP on online spends mean the 3% and 2% rates only apply up to about ₹33,000 and ₹50,000 of spend respectively. Beyond that, you're earning at 1%. There are 11 spending categories that earn nothing, no lounge access, no insurance, and 3.5% forex makes it unusable internationally. And wallet loads through PhonePe are specifically excluded from earning, which means not all PhonePe transactions qualify for the 3% rate.

Get this card if you use PhonePe regularly for online payments and want a simple, low-fee card that gives you straightforward cashback-equivalent value.

Skip it if you travel frequently, spend mostly offline, or want a card with lounge access and travel perks.

If you want higher rewards and Priority Pass membership, check out the PhonePe SBI Card SELECT BLACK Review.

See how PURPLE stacks up in our PURPLE vs SELECT BLACK comparison.

You can compare this card with others on the Magnify app.