Credit card rewards reset: HDFC, SBI, Axis cut perks; what it means for you

India’s credit card landscape is undergoing a structural shift, with leading issuers such as HDFC Bank, SBI Card and Axis Bank revising reward structures, tightening redemption rules and linking key benefits to spending behaviour. The changes, rolling out through 2026, signal a move away from generous, flat reward models towards more conditional and usage-driven frameworks.

Industry experts say the overhaul reflects a broader recalibration by banks to balance customer acquisition with profitability. Adhil Shetty, CEO of BankBazaar, noted that issuers are increasingly aligning rewards with actual spending patterns rather than offering easy, unconditional benefits. This transition, he said, marks a shift from “benefit-led” cards to “behaviour-led” products.

"The recent wave of credit card revisions signals a reset in the rewards system. Issuers are moving away from flat cashback models towards structures that are more closely linked to spending behaviour. While this makes the model more sustainable for banks, it also reduces easy opportunities for consumers to maximise rewards without enough spend. We are now seeing a shift from benefit-led cards to behaviour-led cards, where rewards depend on how and where you spend. This means users need to be more mindful and optimise across categories. At the same time, some newer cards still offer simpler cashback, which can continue to provide value," Shetty explained.

SBI Card tightens redemption flexibility

SBI Card has revised the redemption framework for its popular Cashback SBI Card from April 1, 2026. Cardholders can now redeem reward points only in multiples of 4,000, reducing flexibility in how points can be utilised.

In addition, monthly redemption is capped at 60,000 points across several cards, limiting high-value redemptions. The changes effectively reduce the usability of accumulated rewards, particularly for high spenders who may find it harder to optimise benefits.

The cashback structure has also been tightened, with lower ceilings, faster cap exhaustion and more excluded categories—leading to reduced effective returns despite unchanged headline rates.

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Axis Bank pares travel benefits

Axis Bank has also diluted its credit card ecosystem by cutting back on premium travel partnerships and lowering reward transfer ratios. The loss of key airline and hotel partners such as Accor, Marriott and Qatar Airways has weakened the appeal of its cards among frequent travellers.

Additionally, cards like the Airtel Axis Bank Credit Card have seen the removal of complimentary airport lounge access and a shift towards spend-linked cashback, increasing the threshold required to unlock full benefits.

HDFC tweaks rewards

HDFC Bank has announced multiple changes to its Regalia Gold and Diners Club Privilege credit cards, effective May 15, 2026, with lounge-related rules kicking in from July 1.

For Regalia Gold users, reward accrual has been recalibrated from 4 points per ₹150 to 5 points per ₹200 spent, effectively lowering the reward rate. The bank has also introduced spend-based eligibility for airport lounge access—cardholders must spend at least ₹60,000 in the previous calendar quarter to unlock three domestic lounge visits in the following quarter.

Additional revisions include a 1.75% dynamic currency conversion markup on international transactions and a ₹199 fee for card reissuance. While lifestyle perks such as spa access, airport transfers and hotel benefits continue under the Travel Edge program, the overall structure now demands higher spending to unlock value.

Similarly, Diners Club Privilege cardholders will receive lounge access vouchers only upon meeting the ₹60,000 quarterly spend threshold, reinforcing the shift towards conditional benefits.

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What does this mean for credit card users

Analysts believe these changes are driven by rising costs associated with reward programs and increasing credit card penetration in India. With competition intensifying, banks are focusing on sustainable models that reward genuine spending rather than arbitrage opportunities.

While the revisions may reduce immediate gains for users, they also encourage more disciplined and category-specific spending. For consumers, this means a more complex optimisation strategy—choosing cards based on usage patterns rather than headline benefits.

As India’s credit card market matures, the era of easy rewards appears to be fading, replaced by a more nuanced system where value depends on how strategically customers use their cards.