Karur Vysya Bank SBI Card Review 2026: 1.67% on Grocery, ₹499 Fee, the ₹150 Catch & FAQs
Karur Vysya Bank - SBI Card costs ₹499 and pays 1.67% on departmental stores and grocery, with the fee reversed at ₹1 lakh. But the accrual denominator is ₹150, not ₹100 — here is what that actually costs you, plus fees and FAQs.
The Karur Vysya Bank - SBI Card is a ₹499 entry-level card co-issued with Karur Vysya Bank, paying 1.67% on departmental stores and grocery with the annual fee reversed at ₹1 lakh of spend. It is a narrowed version of SBI's own SimplySAVE, and there is one detail in the reward maths that most write-ups skate over: the accrual denominator is ₹150, not ₹100.
Karur Vysya Bank - SBI Card Quick Overview
| **Card type** | Entry-level shopping card, co-issued with Karur Vysya Bank |
|---|---|
| **Best for** | KVB customers who want a cheap grocery card |
| **Joining / annual fee** | ₹499 + GST, same on renewal — reversed at ₹1,00,000 of annual spend |
| **Network** | Visa |
| **Top reward rate** | 1.67% — 10 Reward Points per ₹150 on departmental stores and grocery |
| **Base rate** | 0.17% — 1 Reward Point per ₹150 |
| **Reward type** | Reward Points, worth ₹0.25 each (4 RP = ₹1) |
| **Welcome benefit** | 2,000 bonus Reward Points (₹500) on ₹2,000 spent in 60 days |
| **Lounge access** | None |
Eligibility Criteria
The card is distributed through Karur Vysya Bank branches — SBI's own FAQ directs applicants there rather than to an online form. No age or income threshold is published; approval rests on the bank's assessment. Indian residency and a valid PAN are required. Add-on cards are free and may be issued to parents, a spouse, children or siblings aged 18 and above.
The ₹150 Denominator, and Why It Matters
SBI's wording is precise and easy to misread:
10 Reward Points per Rs. 150 spent on Departmental and Grocery Stores 1 Reward Point per Rs. 150 spent on other categories
Not per ₹100. Per ₹150. Run the arithmetic at 4 points to the rupee:
| Per ₹150 | Per ₹100 equivalent | Effective rate | |
|---|---|---|---|
| Departmental stores and grocery | 10 RP | 6.67 RP | **1.67%** |
| Everything else | 1 RP | 0.67 RP | **0.17%** |
That 0.17% base rate is the lowest of any SBI card, and it is entirely a function of the denominator. A card paying 1 point per ₹100 would return 0.25% on the same spend — half again as much.
There is a second, quieter cost. Accrual rounds down on every transaction. Spend ₹280 at a supermarket and you earn points on ₹150, not ₹280 — one full block, with ₹130 wasted. Over a year of ordinary grocery runs that rounding compounds into a real deduction. Larger, less frequent transactions earn more efficiently than small ones on this card.
Reward Structure
| Spend | Points | Effective rate |
|---|---|---|
| Departmental stores (MCC 5311) | 10 RP per ₹150 | **1.67%** |
| Grocery and supermarkets (MCC 5411) | 10 RP per ₹150 | **1.67%** |
| Everything else | 1 RP per ₹150 | **0.17%** |
| Fuel | Nil | **0%** |
The accelerated rate is capped at 5,000 Reward Points per calendar month, after which 1 Reward Point per ₹150 — the card's own base rate — continues to accrue. At 10 points per ₹150 the cap binds at ₹75,000 of departmental store and grocery spend a month. SBI's product page does not mention it; the clause is in the card's own T&C e-kit.
The category follows the merchant's MCC, assigned by Visa, not by what the shop sells.
This Card vs SBI's SimplySAVE
The two are close relatives, and the comparison is not flattering.
| Karur Vysya Bank - SBI Card | **SimplySAVE SBI Card** | |
|---|---|---|
| Annual fee | ₹499 | ₹499 |
| Fee reversal | ₹1,00,000 | ₹1,00,000 |
| Welcome bonus | 2,000 RP on ₹2,000 in 60 days | Identical |
| Accelerated categories | Departmental, grocery | Departmental, grocery, **dining, movies** |
| Accelerated rate | 10 RP per ₹150 (1.67%) | Identical |
| Base rate | 1 RP per ₹150 (0.17%) | Identical |
| Fuel waiver | 1% on ₹500–₹3,000, max ₹100 | Identical |
Same fee, same threshold, same rates, same welcome bonus — but SimplySAVE also gives you dining and movies at 1.67%. If both cards are available to you, SimplySAVE is strictly better. The KVB card's reason to exist is the banking relationship, not the economics.
Welcome Benefit
2,000 bonus Reward Points, worth ₹500, on spending ₹2,000 or more within the first 60 days of receiving the card.
That is the fee back in year one, and the ₹2,000 hurdle is trivial. Just note the 60-day clock runs from card receipt, not from approval.
Worked Example
Illustrative, at ₹25,000 a month:
| Category | Monthly spend | Blocks of ₹150 | Points | Value |
|---|---|---|---|---|
| Grocery and departmental | ₹12,000 | 80 | 800 | ₹200 |
| Everything else | ₹13,000 | 86 | 86 | ₹21.50 |
| **Monthly total** | **₹25,000** | **886** | **₹221.50 — 0.89%** |
Annualised: ₹2,658 in Reward Points on ₹3 lakh of spend, plus ₹500 of welcome points in year one — against a ₹499 fee that is reversed at ₹1 lakh, which this example clears three times over.
The rounding losses are not shown in the table but are real: at an average grocery transaction of ₹450, roughly 3–4% of qualifying spend falls outside a complete ₹150 block.
Where You Won't Earn
| Excluded | Note |
|---|---|
| **Fuel** | MCC 5172, 5541, 5542, 5983 — excluded across SBI's range |
| **Cash advances** | 2.5% fee, minimum ₹500, interest from day one |
The fuel surcharge waiver is the whole fuel benefit: 1% reversed on transactions between ₹500 and ₹3,000, capped at ₹100 per statement cycle.
SBI's range-wide transaction fees apply: ₹199 per rent payment, 1% on wallet loads above ₹1,000, 1% on utility payments once the cycle total passes ₹50,000, and 1% on education payments through third-party apps (direct payments to a school or college attract nothing).
Fees and Charges
| Charge | Amount |
|---|---|
| Joining fee | ₹499 + GST |
| Renewal fee | ₹499 + GST, reversed at ₹1,00,000 annual spend |
| Add-on card fee | Nil |
| Finance charge | 3.75% per month — **45% per annum** |
| Interest-free period | 20 to 50 days; none if any part of last month's bill is unpaid |
| Forex markup | 3.5% |
| Cash advance fee | 2.5%, minimum ₹500 |
| Fuel surcharge waiver | 1% on ₹500–₹3,000, max ₹100 per cycle |
| Late payment | ₹100 to ₹1,300 by balance |
| Overlimit | 2.5%, minimum ₹600 |
| Reward redemption fee | ₹99 on physical products, statement credit and physically-sent vouchers |
| GST | 18% on all of the above |
That ₹99 redemption fee matters on a card this size. Redeeming 800 points — ₹200 — for a physical product leaves you ₹101 after the fee. Paying down the card outstanding is the sensible route, and redeeming in larger blocks dilutes the fee.
Is the Karur Vysya Bank - SBI Card Worth It?
Yes, as a free grocery card. At ₹499 reversed from ₹1 lakh of annual spend, with ₹500 of welcome points, the card costs nothing for most users and returns 1.67% on supermarket and departmental store spending. There is very little to lose.
No, if SimplySAVE is available to you. Same fee, same rates, same threshold — but dining and movies are included too. There is no economic reason to prefer this card unless your banking relationship with KVB makes it easier to obtain.
No, as a primary card. A 0.17% base rate is the weakest in SBI's range. Anything outside the grocery aisle earns almost nothing, and the ₹150 rounding quietly takes a further bite.
Consider a step up if your annual spend is above ₹2 lakh. The KVB SBI Platinum at ₹2,999 pays 2.5% on dining, departmental stores and international spends, with lounge access and ₹6,000 of milestone vouchers.
Frequently Asked Questions
What is the annual fee of the Karur Vysya Bank - SBI Card? ₹499 plus GST, on joining and renewal. The renewal fee is reversed if annual spend in the previous year reached ₹1,00,000.
What is the reward rate? 10 Reward Points per ₹150 on departmental stores and grocery — 1.67% at 4 points to the rupee — and 1 Reward Point per ₹150 on everything else, which is 0.17%.
Why is the base rate so low? Because the accrual denominator is ₹150 rather than the ₹100 most cards use. One point per ₹150 works out to 0.67 points per ₹100, or 0.17% after conversion. Accrual also rounds down to complete ₹150 blocks on every transaction.
Is the accelerated rate capped? Yes — 5,000 Reward Points per calendar month, after which 1 Reward Point per ₹150 continues. It binds at ₹75,000 of qualifying spend a month. SBI's product page omits this; the clause is in the card's T&C e-kit. For comparison, the KVB Signature caps at 10,000 a month and the KVB Platinum at 7,500.
Does the card give lounge access? No. There is no lounge programme on this card.
How is it different from the SimplySAVE SBI Card? Fee, fee reversal, rates, welcome bonus and fuel waiver are all identical. SimplySAVE additionally earns the accelerated rate on dining and movies, which this card does not.
How do I apply? Through a Karur Vysya Bank branch. SBI's FAQ directs applicants to the nearest KVB branch.
Cards Mentioned in This Article
