As the year draws to a close, major Indian banks, including SBI, Axis Bank, YES Bank, and AU Small Finance Bank, have announced significant updates to their credit card policies, starting from December 1, 2024. These changes impact various aspects of credit card usage, such as reward points, transaction fees, and redemption processes, offering both new benefits and adding some costs for customers. It is essential for cardholders to stay informed to avoid surprises and make the most of their credit card offerings.
SBI Card to Levy 1% Fee on Utility Payments Over Rs 50,000
SBI Card, one of India’s leading credit card providers, is introducing a 1% fee on utility payments exceeding Rs 50,000, effective from December 1, 2024. This move impacts a wide range of SBI credit cards, including popular options like SimplyCLICK, AURUM, and Gold SBI Cards. Additionally, customers will no longer receive reward points for spending on digital gaming platforms, limiting rewards on certain categories. The new charges may influence the spending behavior of users who frequently pay large utility bills through their credit cards.
Axis Bank Announces Redemption Fee Changes and Other Updates
Axis Bank is also revamping its credit card policies, with new changes set to take effect from December 20, 2024. Among these revisions is a new redemption fee of Rs 9, along with an 18% GST for cash redemptions. For customers looking to transfer their reward points to mileage programs, the fee will be Rs 199 plus 18% GST. Alongside these changes, the bank is revising interest rates, penalty charges, and fees for transactions such as wallet loads, fuel purchases, and rent payments. These adjustments may impact customers who use their Axis credit cards for a wide range of everyday expenses.
YES Bank Sets New Limits on Reward Point Redemptions
YES Bank is altering its reward points redemption policies, starting December 1, 2024. The new policy introduces limits on the usage of YES Rewardz points for flights and hotel bookings. MARQUEE credit cardholders can redeem points for up to 70% of the invoice value or three lakh YES Rewardz points per month. Similarly, RESERV credit cardholders can redeem points up to 70% of their bill value, with a limit of two lakh points per month. Other cardholders are restricted to redeeming up to one lakh points per month for flight and hotel bookings. This change is likely to affect frequent travelers who rely on their reward points for significant bookings.
AU Small Finance Bank Introduces Reward Point Changes
AU Small Finance Bank is making adjustments to its Ixigo AU credit card’s reward point system, effective December 22, 2024. One of the notable changes is that cardholders will no longer earn reward points for certain categories, including education, government transactions, rent payments, and Bharat Bill Payment System (BBPS) transactions. Additionally, there will be no reward points earned on international transactions, although the bank is introducing a 0% forex markup fee for international spends from December 23, 2024. On a positive note, customers will continue to earn reward points on utility, telecom, and insurance-related transactions, with up to 100 points for insurance-related purchases.
How These Changes Impact Consumers
For consumers, these updates highlight the evolving landscape of credit card offerings in India. While some changes, like the additional fees and revised reward point systems, may lead to increased costs, there are also potential benefits in terms of more transparent policies and the ability to manage points more effectively. Customers should be mindful of these changes and adapt their spending habits accordingly to maximize the benefits of their credit cards.
As these updates take effect, it is advisable for credit cardholders to review the terms and conditions of their respective cards and stay up to date with the changes to avoid unexpected charges. Being proactive in managing credit card spending can help customers make informed decisions and maintain the value of their credit card rewards and benefits.
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