As 2024 draws to a close, several prominent banks, including SBI, Axis Bank, YES Bank, and AU Small Finance Bank, are making significant changes to their credit card policies, effective from December 1, 2024. These changes are crucial for cardholders to understand, as they will have an impact on everything from transaction fees to reward point redemption options. Customers need to stay informed to effectively manage these new rules and ensure that they are maximizing the benefits of their credit cards.
Starting December 1, SBI Card will impose a 1% fee on utility payments that exceed Rs 50,000. This is an important change for cardholders who regularly use their credit cards for paying utility bills or other large payments. Additionally, SBI will no longer offer reward points on spending at digital gaming platforms, a policy that affects several SBI credit cards, such as SimplyCLICK, AURUM, and Gold SBI Cards. These cards will no longer reward cardholders for gaming-related transactions, which could be disappointing for frequent players who previously benefited from these points.
On December 20, Axis Bank will introduce a redemption fee of Rs 9, along with an 18% GST on cash redemptions. In addition, there will be a charge of Rs 199, plus 18% GST, for point transfers to mileage programs. These changes may impact customers who frequently use their credit card reward points for travel-related purposes, as the new fees could add up over time. Axis Bank is also making adjustments to interest rates, penalty charges, and transaction fees for various services, including wallet loads, fuel purchases, and rent payments. Cardholders should be aware of these changes to avoid any surprises on their bills and manage their card usage more carefully.
YES Bank is also implementing several new rules for its credit cardholders starting December 1, 2024. The bank will limit the use of reward points for flights and hotel bookings, with the redemption capped at 70% of the invoice value or a maximum of three lakh YES Rewardz points per month for MARQUEE credit cardholders. For RESERV cardholders, the limit is 70% of the invoice value or two lakh points per month. For all other credit cardholders, the limit is set at 70% of the bill or one lakh points per month. This may affect frequent travelers, as the new restrictions will limit how much of their flight or hotel bill can be covered by points, making it more difficult to fully redeem points for larger purchases.
Meanwhile, AU Small Finance Bank is updating its Ixigo AU credit card policy, effective December 22, 2024. The bank will no longer offer reward points for transactions related to education, government payments, rent, or Bharat Bill Payment System (BBPS) transactions. In addition, reward points for international transactions will be discontinued, although the bank will introduce a 0% forex markup from December 23, 2024. While this move may be seen as beneficial for cardholders who frequently travel abroad, it does represent a significant shift for those who previously relied on accumulating points through international spending. However, AU Small Finance Bank will still offer reward points for telecom, utility, and insurance spending, at a rate of one point per Rs 100 spent in these categories. Cardholders will also earn up to 100 reward points per transaction on insurance spending, which could be a valuable perk for those who use their credit cards for insurance payments.
These updates reflect a growing trend in the credit card industry, as banks refine their offerings to better align with shifting consumer behavior and ensure they maintain profitability. Cardholders will need to carefully review these changes and adapt their spending habits accordingly. It's essential for customers to understand the new fees and restrictions in order to maximize their credit card rewards and avoid unnecessary charges. With the new policies coming into effect across different banks, it is more important than ever to stay informed and make smart decisions when using credit cards in the new year.
