Credit Card Fees and Rewards Are Changing: What You Need to Know in 2025
Banks in India are revising credit card fees, rewards, and spending rules in 2025. Major banks such as Axis Bank, HDFC Bank, SBI Card, and YES Bank have introduced new charges and adjusted reward structures, impacting how you earn and redeem benefits. Staying informed can help you adapt your spending strategy.
Recent Changes in Credit Card Terms
- Axis Bank: Introduced a redemption fee for EDGE Rewards and new transaction fees.
- HDFC Bank: Imposed a 1% fee on high-value utility payments and increased card fees.
- SBI Card: Removed rewards for rent, education, and government payments; added a 1% fee on utility payments over ₹50,000.
- YES Bank: Capped travel-related reward redemptions and adjusted lounge access criteria.
- Bank of Baroda: Increased interest rates on unpaid dues.
Why Are Banks Revising Fees and Rewards?
With increasing high-value credit card usage, banks are restructuring rewards to prevent misuse and ensure long-term sustainability. This includes limiting benefits on specific transactions and increasing fees on utility and rent payments.
Impact on Cardholders
- Travel & Cashback: Restrictions on lounge access and reward earnings.
- Spending Costs: Higher fees on rent and utility transactions.
- Regulatory Oversight: Banks must notify customers of fee changes.
Conclusion
To optimise your credit card usage, stay updated on policy changes and reassess spending habits.
Disclaimer: This article is for educational purposes only and does not constitute financial advice.