Major policy changes for Indian credit card issuers: Details here
As April approaches, significant policy changes are set to impact major credit card issuers in India, including SBI Card, ICICI Bank, and Axis Bank. These changes primarily revolve around reward points and lounge access benefits. Rohit Chhibbar, head of the Credit Cards Business at Paisabazaar, explains that such devaluations are common and can be influenced by various factors like a bank's strategic decisions, viability of rewards programs, and current market conditions.
Challenges and adjustments in credit card operations
Adhil Shetty, CEO of BankBazaar, highlights the broader issues that credit card companies and their partners grapple with to maintain viable operations. These challenges range from meeting customer needs during inflation to fierce competition and the need to enhance margins. Shetty underscores the necessity for credit card companies to reassess their rewards programs and adapt to shifting market trends.
Impact of devaluation on personal finances
Chhibbar emphasizes the importance of evaluating the impact of significant devaluations on personal finances. He advises consumers to consider alternative credit cards if their current card undergoes a major devaluation and falls below expectations. Chhibbar also recommends comparing available options based on individual spending habits and the overall value provided.
Specific changes in credit card policies
Starting April 1, 2024, SBI Card will cease accruing reward points on rent payments for select cards, including AURUM, SBI Card Elite, and SimplyCLICK SBI Card. ICICI Bank will increase the minimum spend required for complimentary airport lounge access to Rs. 35,000 in the preceding calendar quarter for several credit cards. YES Bank will require a minimum expenditure of Rs. 10,000 in the ongoing quarter, to qualify for domestic lounge access benefits across all its credit cards.
