Credit card tweaks in December: Axis Bank, State Bank of India, AU Small Finance Bank, YES Bank to change fees, rewards

In December 2024, several banks will implement changes to their credit card terms, which will impact fees, rewards, and transaction details. It is important for customers to stay informed about these updates to avoid any unexpected charges and take full advantage of their credit card perks.

Axis Bank

Effective December 20, 2024, Axis Bank will be implementing a number of fee adjustments that will impact its credit card clientele. One significant alteration involves the introduction of redemption fees for EDGE Rewards and Miles.

The redemption fees are as follows:

Rs 99 (plus 18% GST) for cash redemptions.
Rs 199 (plus 18% GST) for transferring points to mileage programs.

These new fees will be applicable to various cards, such as the Axis Bank Atlas, Magnus, and Reserve Credit Cards. However, it is important to note that Citi-protege cards like Axis Bank Olympus and Horizon will not be affected by these changes.

To prevent incurring fees, customers should redeem or transfer their points before the deadline.

The monthly interest rate will increase to 3.75%, which will result in higher costs for customers who maintain a balance on their cards.

Additional fee adjustments include a Rs 500 fee or 2% of the amount, whichever is higher, for auto debit reversals and cheque returns. Branch cash payments will now have a Rs 175 charge.

A penalty of Rs 100 will be imposed if the Minimum Amount Due (MAD) is unpaid for two consecutive cycles.

SBI Card Policies

Starting December 1, 2024, SBI Card, a subsidiary of the State Bank of India, will introduce new transaction fees for certain activities. These fees will apply to wallet loads above Rs 10,000, utility payments exceeding Rs 25,000, and gaming transactions over Rs 10,000. Additionally, utility payments and reward points will be discontinued as part of the updated credit card policies.

A 1% fee will be applied to utility payments exceeding Rs 50,000 for electricity, water, and gas in a billing cycle. Payments below this threshold are exempt from charges.

Reward points will not be earned on transactions made on digital gaming platforms, impacting various SBI credit cards such as premium, lifestyle, and gold cards.

AU Small Finance Bank

As of December 22, 2024, AU Small Finance Bank will be making changes to the features of its Ixigo AU credit card. The revisions will involve adjustments to the way reward points are accumulated and utilized.

There will be a discontinuation of reward points for certain categories of transactions, including those related to education, government services, rent payments, and transactions made through the Bharat Bill Payment System (BBPS).

In addition, AU Bank will no longer offer reward points for international spends to accommodate the introduction of a 0% forex markup on international transactions, effective December 23, 2024.

Furthermore, there will be revisions to the reward points earned on telecom, utility, and insurance transactions. Cardholders will still earn 1 reward point for every Rs 100 spent on these categories, with a limit of 100 reward points per insurance transaction.

YES Bank

In an effort to enhance its credit card offerings, YES Bank will be implementing updates to its rewards points redemption policy.

Effective as of December 1, 2024, there will be new limits on the number of rewards points that can be redeemed for flights and hotels. The redemption cap will vary by card type, with premium cards like YES Private and YES MARQUEE having higher limits.

Additionally, starting April 1, 2025, cardholders will be required to meet higher spending thresholds in order to access complimentary airport lounges. For instance, YES MARQUEE cardholders will need to spend Rs 1 lakh to enjoy six lounge visits, while YES First Preferred cardholders will need to spend Rs 75,000 for two visits.