With the onset of the new financial year, users across India are bracing for a slew of credit card changes set to take effect from April 1, 2025. Major banks, including State Bank of India (SBI), IDFC First Bank, and Axis Bank, are introducing modifications to their credit card policies, which are likely to impact millions of cardholders nationwide.
Reward Points Restructured One of the most significant changes will come from SBI, which has announced a reduction in reward points for select transactions. For example, customers of the SimplyClick SBI Card would now get reward points of 5X while shopping on Amazon, a whopping cut from the previous 10X rewards. That said, spending on partner partners such as Vistara, BookMyShow, and Apollo 24/7 will retain the current 10X reward points.
Air India Credit Card Perks Reduced In a similar action, the Air India SBI Credit Card will have its reward points drastically reduced on ticket bookings. The Platinum version will now provide 5 points for every ₹100 spent on ticket purchases from the earlier 15 points. The Signature card members, who previously had 30 points per ₹100, will now get only 10 points. Frequent flyers relying on these rewards may find themselves at a loss.
Changes Post Vistara-Air India Merger Following the much-anticipated merger of Vistara and Air India, Axis Bank has also revised its Vistara credit card benefits. While annual fees will be waived off for renewed cards post-April 18, the much-coveted complimentary Maharaja Club tier membership will no longer be available. This development is expected to disappoint travelers who heavily relied on these perks.
Milestone Rewards Are Discontinued by IDFC First Bank Meanwhile, the Club Vistara credit card’s milestone rewards are being discontinued, according to IDFC First Bank. After March 31, 2025, cardholders will no longer be eligible for bonus rewards on spending milestones. In addition, vouchers for premium economy tickets and Club Vistara Silver membership will no longer be available. However, the bank will waive the annual renewal fee for the first year.
Credit card changes: Effect on Cardholder
Consumers will experience these changes in many ways, particularly those who use credit cards regularly for shopping, traveling, and entertainment. The lessened reward points will make users pay more for their card if they want to gain the same rewards previously. Also, cancellation of premium memberships and vouchers will affect frequent flyers.
What To Do?
In order to cushion the effects of these changes, experts advise cardholders to study the new terms on the corresponding bank websites in detail. It may also help to compare other banks’ credit card offers so that benefits could be retained or even enhanced. Modifying consumption patterns to channel spending on those transactions that still earn higher rewards may also prove to be a prudent approach.
