 "HDFC Bank")
HDFC Bank, the largest private sector bank in the country, has announced a set of changes in the lounge access programme for Regalia Credit cards. As per the modifications, the access to lounge benefits will depend on the credit card spending of the customers.
According to the new system, Regalia credit cardholders will have to spend a minimum of Rs 1 lakh or more in a calendar quarter to avail lounge benefits. The quarters are categorised as January-March, April-June, July-September, and October-December. The changes will come into effect from December 1, 2023.
Further, the process for availing these benefits has also been restructured. After one meets the spending criteria specified by the lender, cardholders will have to visit the Regalia SmartBuy page and the lounge benefits page on the bank's website in order to generate a lounge access voucher to claim their benefits.
HDFC Bank,
On reaching the quarterly milestone, the customers are eligible for just two complimentary lounge access vouchers. Post which, the access will depend on the credit card spending of the cardholders.
While accessing lounge areas overseas, customers can apply for Priority Pass for self and/or add-on members post doing four retail transactions on their HDFC Bank Regalia First Credit. They can use Priority Pass to add oneself and another member and avail up to three complimentary access per calendar year outside India. However, anyone who exceeds the complimentary access will be charged at US $27 + GST per visit.
Use of Priority Pass in India will attract charges on the credit card.
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These charges will be billed on the subsequent statement within 90 days of the date of visit and this transaction will not accrue Reward Points. The currency conversion rate would be as per the exchange rate on the day of billing.
Experts believe the action from the lender to be a measure that will aid in increasing profitability and ensuring sustainability of the credit card business.
"There’s a heightened focus on rewards devaluation right now. But this is hardly a new development. It’s an ongoing process in reaction to challenges such as inflation, pressure on margins, and competition," said Adhil Shetty, CEO of BankBazaar.
"Everyone in the credit card ecosystem has the responsibility to grow profitably and sustainably. India is becoming rapidly credit-mature in a period of high inflation. Therefore, credit card providers will have to revisit their rewards programmes and tweak them for sustainability while providing the best possible customer experience," Shetty added.
HDFC Bank is the largest credit card issuer in the country. Its cards in circulation increased to 18.83 million in September from 18.53 million cards in the month-ago period.
