As 2024 comes to a close, several leading banks in India are set to revise their credit card terms. These changes will impact fees, rewards, and transaction policies. Staying informed about these updates is essential to avoid unexpected charges and maximize your benefits.
In this article, we detail the key changes for Axis Bank, SBI Card, AU Small Finance Bank, and YES Bank, along with tips on how to adapt to these updates.
Axis Bank: Increased Fees and New Redemption Charges
Starting December 20, 2024, Axis Bank will introduce several changes to its credit card policies:
- Redemption Fees for EDGE Rewards and Miles
- Rs 99 + 18% GST for cash redemptions.
- Rs 199 + 18% GST for transferring points to mileage programs.
- Applicable to cards such as Axis Atlas, Magnus, and Reserve.
- Exemptions: Citi-protege cards like Olympus and Horizon.
- Higher Monthly Interest Rates
- Monthly interest rates will increase to 3.75%, raising the cost for customers who carry forward balances.
- Additional Charges
- Auto debit reversals and cheque returns: Rs 500 or 2%, whichever is higher.
- Branch cash payments: Rs 175 per transaction.
- Late payment penalties: Rs 100 if the Minimum Amount Due (MAD) is unpaid for two consecutive billing cycles.
Tip: Redeem your rewards before December 20 to avoid incurring new fees.
SBI Card: Revised Transaction Fees and Reward Policies
From December 1, 2024, SBI Card will implement significant changes:
- New Transaction Fees
- Wallet loads above Rs 10,000: 1% fee.
- Utility payments exceeding Rs 50,000 per billing cycle: 1% fee.
- Gaming transactions over Rs 10,000: Additional charges.
- Impact on Rewards
- Reward points will no longer accrue for transactions on digital gaming platforms, utility payments, and wallet loads above Rs 10,000.
Key Cards Affected:
Premium, lifestyle, and gold credit cards will see a reduction in earning potential for these categories.
AU Small Finance Bank: Changes to Ixigo AU Credit Card
Effective December 22, 2024, AU Small Finance Bank will revise its credit card features:
- Reward Points Adjustment
- No reward points for transactions related to education, government services, rent payments, and Bharat Bill Payment System (BBPS).
- International transactions will no longer earn reward points but will benefit from a 0% forex markup, starting December 23, 2024.
- Revised Points on Utility and Telecom Transactions
- Cardholders will earn 1 reward point for every Rs 100 spent, capped at 100 points per insurance transaction.
Tip: For frequent international transactions, the 0% forex markup offers significant savings.
MUST READ: Senior Citizens and Income Taxes: What You Must Know About Tax Exemptions
YES Bank: Updates to Rewards and Lounge Access
YES Bank will implement changes in two phases:
- Rewards Redemption Policy (Effective December 1, 2024)
- Caps on the number of points redeemable for flights and hotels based on card type.
- Premium cards like YES Private and YES MARQUEE will have higher redemption limits.
- Lounge Access Policy (Effective April 1, 2025)
- Increased spending thresholds to qualify for complimentary airport lounge visits:
- YES MARQUEE: Spend Rs 1 lakh for 6 visits.
- YES First Preferred: Spend Rs 75,000 for 2 visits.
- Increased spending thresholds to qualify for complimentary airport lounge visits:
Tip: Plan large purchases strategically to meet lounge access thresholds.
Comparison of Key Changes
| Bank | Major Updates | Effective Date |
|---|---|---|
| Axis Bank | New redemption fees, higher interest rates, late fees | December 20, 2024 |
| SBI Card | Transaction fees on wallet loads, gaming, and utilities | December 1, 2024 |
| AU Small Finance | Removal of reward points for select categories, 0% forex | December 22-23, 2024 |
| YES Bank | Reward redemption limits, revised lounge access policies | December 1, 2024 & April 1, 2025 |
How to Adapt to the Changes
- Review Your Card Terms: Read updated terms shared by your bank to avoid surprises.
- Maximize Benefits Before Deadlines: Redeem rewards and adjust spending habits.
- Compare Credit Cards: Consider switching to a card with better perks if your current card no longer meets your needs.
Conclusion
The upcoming changes to credit card fees and rewards in December 2024 present both challenges and opportunities. Staying informed and adjusting your financial habits can help you minimize costs and maximize benefits. Stay proactive, and make the most of your credit card rewards and perks.
Disclaimer:
This article is for informational purposes only. Readers are advised to consult with their respective banks for the most accurate and updated policies.
