YES Bank, ICICI update credit card rewards: More spending, fewer benefits

From December 1, YES Bank will cap YES Rewardz points on flights and hotel bookings. ICICI Bank will raise lounge access spend requirements from November 15

YES Bank and ICICI Bank have announced updates to their credit card benefits and rewards programmes. ICICI Bank, beginning November 15, 2024, will increase spend requirements for its own lounge access perks and implement new fees and restrictions across various transactions. Meanwhile, from December 1, YES Bank will introduce limits on rewards points redemption for flights and hotels, while also raising quarterly spending thresholds for lounge access from April 1, 2025. These changes align with similar updates recently announced by other banks, including HDFC and Axis Bank.

 

YES Bank’s new rewards redemption limits

 

Starting December 1, YES Bank will limit the number of YES Rewardz points redeemable on flights and hotel bookings. Cardholders can use their points to cover up to 70% of the total invoice or up to a monthly cap, whichever is lower. The monthly caps are:

 

 

MARQUEE Cards: 3,00,000 points

RESERV Cards: 2,00,000 points

Other YES Bank credit cards: 1,00,000 points

 

This restriction adds to the existing rule permitting only 50% of available points for gift vouchers and statement credits. YES Bank says these updates will streamline reward use, ensuring cardholders get “value-focused” benefits.

 

Increased lounge access requirements

 

From April 1, 2025, YES Bank will increase the quarterly spending thresholds required for cardholders to qualify for complimentary airport lounge access. Requirements are as follows:

 

YES MARQUEE and RESERV Cards: Rs 1 lakh spend for six or three lounge visits, respectively.

YES First Preferred and Business Cards: Rs 75,000 spend for two lounge visits.

YES ELITE+, SELECT, BYOC, Wellness Plus, and Prosperity Business Cards: Rs 50,000 spend for one or two visits, depending on the card.

 

Spending must occur within specified quarters (eg, December 21 – March 20 for April–June lounge access). The visit count remains the same, but the new spending requirements must be met.

 

ICICI Bank revamps credit card benefits and fees

 

Effective November 15, ICICI Bank will raise spending thresholds for lounge access and introduce several new fees and limitations across its credit cards:

 

1. Lounge access spending threshold increased  

To access domestic lounges in the following quarter, cardholders now need to spend Rs 75,000 in the preceding quarter. Previously, the required amount was Rs 35,000.

 

2. Spa access benefit discontinued

Spa access, available on certain ICICI credit cards through DreamFolks, will end from November 15.

 

3. Capping reward points for utility and insurance spends

Monthly rewards for utility payments are capped at Rs 40,000 to Rs 80,000 depending on the card, with similar caps for insurance payments.

 

4. No reward points on government transactions

The Emeralde Mastercard Metal Credit Card will no longer earn points on government-related spends, such as tax payments and fees.

 

5. Limits on grocery spend rewards

Reward points for grocery and department store purchases will be limited to Rs 20,000 or Rs 40,000, depending on the card.

 

6. Fuel surcharge waiver capped at Rs 50,000

ICICI Bank will offer a surcharge waiver only for fuel purchases up to Rs 50,000 per month, or Rs 1 lakh for Emeralde Mastercard holders.

 

7. New fees for third-party education payments

A 1% fee will apply to education payments made through third-party platforms, while direct payments to schools or universities will remain fee-free.

 

8. 1% fee on utility spends over Rs 50,000

Utility payments exceeding Rs 50,000 will incur a 1% transaction fee, as will fuel transactions over Rs 10,000.

 

9. Add-on card fee introduced

A Rs 199 fee will be charged annually for add-on cards, applied on the card’s anniversary.

 

10. Lowered annual fee waiver threshold

The annual fee waiver threshold for Emeralde cards is being lowered to Rs 10 lakh from Rs 15 lakh.

 

11. Revised late payment fees

Late payment charges now range from Rs 100 to Rs 1,300, based on the outstanding balance.