 "Credit card changes in December: Check out Axis Bank, YES Bank, SBI updates")
Several Indian banks, including Axis Bank, State Bank of India (SBI), YES Bank, and AU Small Finance Bank, have introduced changes to their credit card terms in December 2024. These updates relate to reward point structures, fees, and payment conditions, impacting various customer categories. Take a look at the changes:
AU Small Finance Bank: Changes to reward points
AU Small Finance Bank has revised its reward point structure for the Ixigo AU credit card, effective December 22, 2024. These changes affect both domestic and international transactions:
1. No reward points on specific categories: Transactions involving education, government services, rent, and Bharat Bill Payment System (BBPS) payments will no longer qualify for reward points.
2. International transactions: While the bank is introducing a 0% forex markup on international transactions from 23 December, reward points for such transactions will be discontinued.
3. Utility, telecom, and insurance payments: Cardholders will earn 1 reward point per Rs 100 spent on these categories. For insurance-related payments, a cap of 100 reward points per transaction will apply.
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These updates reflect changes to benefits for certain transaction types, potentially altering how customers use the card.
Axis Bank: Revised fees and conditions
Axis Bank has implemented multiple changes across its credit card terms, ranging from cashback eligibility to revised charges and penalties.
Airtel cashback eligibility: Customers can continue to receive 25% cashback on bill payments and recharges for active Airtel connections via the Airtel Thanks platform. However, payments for hardware costs, installation fees, advance recharges, or new and inactive connections will no longer be eligible for cashback.
Revised charges:
1. Finance charges will increase from the current rate of 3.6% per month to 3.75%.
2. Cheque return fees or auto-debit reversals will now incur a minimum charge of Rs 500, up from Rs 450. The earlier cap of Rs 1,500 on the maximum fee has been removed.
3. A penalty of Rs 100 will be added for consecutive billing cycles where the minimum amount due (MAD) remains unpaid. The existing late payment charges (LPC) structure will remain in effect.
These changes will apply to multiple Axis Bank cards, including Axis Reserve, Atlas, Magnus for Burgundy, and Olympus.
SBI: Utility payment fees
SBI has introduced a new fee for high-value utility payments, effective 1 December 2024.
< If the total utility payments made in a billing period exceed Rs 50,000, a 1% fee will be applied to the amount.
< Payments qualifying as utility payments include telephone, mobile, electricity bills, and insurance premium payments.
An official statement on the SBI Card website stated, “Utility payments exceeding Rs 50,000 in a billing cycle will incur a 1% fee on the total amount.”
Credit card changes across major banks in December
Several Indian banks, including Axis Bank, State Bank of India (SBI), YES Bank, and AU Small Finance Bank, have introduced changes to their credit card terms in December 2024. These updates involve reward point structures, fees, and payment conditions, impacting various customer categories. Take a look at the changes:
AU Small Finance Bank: Changes to reward points
AU Small Finance Bank has revised its reward point structure for the Ixigo AU credit card, effective 22 December 2024. These changes affect both domestic and international transactions:
1. No reward points on specific categories: Transactions involving education, government services, rent, and Bharat Bill Payment System (BBPS) payments will no longer qualify for reward points.
2. International transactions: While the bank is introducing a 0% forex markup on international transactions from 23 December, reward points for such transactions will be discontinued.
3. Utility, telecom, and insurance payments: Cardholders will earn 1 reward point per Rs 100 spent on these categories. For insurance-related payments, a cap of 100 reward points per transaction will apply.
These updates reflect changes to benefits for certain transaction types, potentially altering how customers use the card.
Axis Bank: Revised fees and conditions
Axis Bank has implemented multiple changes across its credit card terms, ranging from cashback eligibility to revised charges and penalties.
Airtel cashback eligibility: Customers can continue to receive 25% cashback on bill payments and recharges for active Airtel connections via the Airtel Thanks platform. However, payments for hardware costs, installation fees, advance recharges, or new and inactive connections will no longer be eligible for cashback.
Revised charges:
1. Finance charges will increase from the current rate of 3.6% per month to 3.75%.
2. Cheque return fees or auto-debit reversals will now incur a minimum charge of Rs 500, up from Rs 450. The earlier cap of Rs 1,500 on the maximum fee has been removed.
3. A penalty of Rs 100 will be added for consecutive billing cycles where the minimum amount due (MAD) remains unpaid. The existing late payment charges (LPC) structure will remain in effect.
These changes will apply to multiple Axis Bank cards, including Axis Reserve, Atlas, Magnus for Burgundy, and Olympus.
SBI: Utility payment fees
SBI has introduced a new fee for high-value utility payments, effective December 1, 2024.
< If the total utility payments made in a billing period exceed Rs 50,000, a 1% fee will be applied to the amount.
< Payments qualifying as utility payments include telephone, mobile, electricity bills, and insurance premium payments.
An official statement on the SBI Card website stated, “Utility payments exceeding Rs 50,000 in a billing cycle will incur a 1% fee on the total amount.”
YES Bank: New reward point caps
YES Bank has updated its reward point redemption policies for flights and hotel bookings. The changes, effective 1 December 2024, set a cap on the maximum number of YES Rewardz points redeemable in a calendar month.
YES Private & Private Prime cards: Up to 6,00,000 points.
MARQUEE cards: Up to 3,00,000 points.
RESERV cards: Up to 2,00,000 points.
Other YES Bank credit cards: Up to 1,00,000 points.
Additionally, cardholders can redeem points for only 70% of the total invoice value. This is in addition to an existing cap, which limits redemptions for gift vouchers and statement credits to 50% of the available points.
“Customers are advised to factor in these caps when planning point redemptions,” YES Bank noted in an advisory.