Credit card changes from June 1: How they affect you?
What's the story
Major banks in India are set to revamp their credit card policies starting June 2025. The changes will impact the reward structures, fee waivers, redemption values, and lounge access. Cardholders of HDFC Bank, Axis Bank, and Kotak Mahindra Bank will be affected by these revisions. Here's a detailed look at the upcoming changes for each bank.
Policy changes
Kotak Mahindra Bank's policy overhaul
From June 1, Kotak Mahindra Bank will revamp its credit card reward system and introduce new charges. Several categories like utilities, education, wallets, fuel, rent, government spends, insurance, and online gaming will either stop earning rewards or see reduced earning potential after a certain spending cap is crossed. For instance, no rewards on rent or fuel transactions for Kotak Privy League Signature cardholders.
Fee hike
Transaction fees and interest rates to increase
Kotak Mahindra Bank will also introduce a 1% transaction fee on certain spends such as rent and education, irrespective of amount. The bank will also raise the fuel surcharge waiver threshold and hike interest rates on most cards from 3.50% to 3.75% per month (42% to 45% annually). Fees for failed standing instructions will be hiked too, with the minimum amount due now being 1% of total outstanding balance.
Reward point changes
Axis Bank credit card to undergo changes
Axis Bank will begin changing its REWARDS Credit Card from June 20. Spends on utilities, telecom, fuel, rent, wallet top-ups, insurance, education, government payments, and tolls will no longer earn reward points. Rent and wallet top-ups will not count toward annual fee waiver eligibility, while milestone benefits will exclude these categories as well as cash withdrawals.
Policy tightening
HDFC Bank tightens lounge access policy
HDFC Bank will tighten its lounge access policy for Tata Neu Infinity credit cardholders from June 10. The automatic lounge swipe system will be discontinued and users will have to spend ₹50,000 per calendar quarter to earn lounge vouchers. These vouchers shall be sent via SMS and email and must be claimed within 120 days of receipt.
Card benefits
HDFC's Tata Neu Infinity card retains key benefits
Despite the changes in access rules, Tata Neu Infinity card will continue to offer 5% NeuCoins on Tata brand and Tata Neu platform spends, and 1.5% NeuCoins on other transactions. New users shall get 1,499 NeuCoins after their first transaction within 30 days of issuance. The annual fee is waived on spends over ₹3 lakh, with a fuel surcharge waiver of 1% (on spends between ₹400-₹5,000).