
As we approach April, there are significant policy changes that will affect major credit card issuers in India, such as SBI Card, ICICI Bank, and Axis Bank. These changes mainly involve reward points and lounge access benefits. It’s important for credit card users to be aware of these changes and understand how they may impact their personal finances.
Factors Influencing Policy Changes
Rohit Chhibbar, the head of the Credit Cards Business at Paisabazaar, explains that devaluations like these are common and can be influenced by various factors. These factors include a bank’s strategic decisions, the viability of rewards programs, and the current market conditions. It’s crucial for credit card companies to constantly evaluate and adapt their offerings to meet the evolving needs of their customers and the market.
Challenges Faced by Credit Card Companies
Adhil Shetty, the CEO of BankBazaar, highlights the broader challenges faced by credit card companies and their partners in maintaining viable operations. These challenges range from meeting customer needs during inflation to facing fierce competition and the need to enhance margins. To stay competitive, credit card companies must reassess their rewards programs and adapt to shifting market trends.
Evaluating the Impact on Personal Finances
Chhibbar emphasizes the importance of evaluating the impact of significant devaluations on personal finances. If your current credit card undergoes a major devaluation and falls below your expectations, he advises considering alternative credit cards. It’s essential to compare available options based on your individual spending habits and the overall value provided by the cards.
Specific Policy Changes
Starting from April 1, 2024, SBI Card will no longer accrue reward points on rent payments for select cards, including AURUM, SBI Card Elite, and SimplyCLICK SBI Card. This means that these cards will no longer offer reward points for rent payments.
ICICI Bank, on the other hand, will increase the minimum spend required for complimentary airport lounge access to Rs. 35,000 in the preceding calendar quarter for several credit cards. This means that to qualify for complimentary airport lounge access, cardholders will need to spend a minimum of Rs. 35,000 in the preceding calendar quarter.
YES Bank has also implemented a change in their policy. They will now require a minimum expenditure of Rs. 10,000 in the ongoing quarter to qualify for domestic lounge access benefits across all their credit cards. This means that cardholders will need to spend at least Rs. 10,000 in the current quarter to enjoy domestic lounge access benefits.