Two major private sector banks Axis Bank and IDFC FIRST Bank have announced devaluation across some of their popular credit cards. Axis Bank is set to revise features and benefits on some of its premium cards starting April 20, while IDFC FIRST Bank will implement similar changes on most of its cards from May 1, 2024.

Earlier, another major bank, HDFC Bank, tweaked the process and policies pertaining to the features and benefits of its popular card Regalia.

First, you should know what exactly credit card devaluation is. It means that the benefits like cashback, reward points, or travel perks previously offered on your credit card by your issuer bank will no longer be available, either partially or fully. Though you will now receive fewer benefits compared to what was promised at the time of the issuance of your card, you still have to pay the same annual fee and interest rates, as per the card’s policy. So, in short, you get less value for the money you spend using your credit card due to devaluation.

Also Read: Credit Card Points: 5 best ways to make every reward count

Which Axis Bank cards will be devalued starting from April 20?

In the case of Axis Bank, the affected cards include Axis Magnus, Axis Atlas, IndianOil Axis, Axis Ace, Flipkart Axis Card, Axis Vistara Infinite, and Axis Privilege.

What are the changes in the features and benefits on these Axis Bank cards?

Some of the key changes in the perks and benefits associated with the cards are – access to domestic lounges being linked to your spending, new rules added to the rewards program that might exclude certain purchases, services like concierge and meet and greet being taken away, and the basic rates being lowered on entry-level cards.

The bank has introduced some changes to the list of airline and hotel partners, which used to be a big selling point for premium and travel cards. The number of partners hasn’t changed, but they’ve been grouped differently with limits on how much a customer can redeem. This policy is going to have a significant impact on users who are loyal to specific brands. Premium cards like Magnus and Vistara Infinite, as well as mid-range cards like Axis Atlas, are affected by this move.

Axis Bank has now excluded jewellery and insurance spending from the list of most of their cards. There is now spend-linked domestic lounge access across many of its cards. Premium to entry-level cards all require users to spend at least Rs 50,000 in the previous quarter to access complimentary lounges. Many card issuers are adopting a spend-linked lounge access programme like HDFC Bank.

The base cashback rates on entry-level cards have been lowered. It has been reduced from 2% to 1.5% for Axis Ace and from 1.5% to 1% for Flipkart Axis Card. However, Axis Ace remains a good option for utility expenses. The card provides a 5% unlimited cashback on transactions made via Google Pay. However, payments made through alternative platforms won’t earn you any cashback rewards.

Which IDFC FIRST Bank cards will be devalued starting from May 1?

IDFC FIRST Bank has decided to introduce changes in terms of the rewards programme, exclusions and other conditions on cards like IDFC FIRST Millennia & Classic Credit Cards, IDFC FIRST Select Credit Card, IDFC FIRST Wealth Credit Card, Club Vistara IDFC FIRST Credit Card, IDFC FIRST Power+ & IDFC FIRST Power Credit Card.

What are the changes in the features and benefits on these IDFC First Bank cards?

Some common revisions that have been made across many credit cards include adjustments to the rewards programme, such as changes to the rewards earning rate and the monthly spend threshold for earning 10X rewards.

Further, a 1% transaction fee will now be charged on utility spends exceeding Rs 20,000 per month. A minimum value of Rs 249 has been set for the 1% rent and property management fee. The monthly spending requirement to access lounges, where applicable, has been raised from Rs 5,000 to Rs 20,000. The value of movie ticket discounts has been halved on applicable cards.