India’s credit card market, with over 100 million cards in circulation as of 2024 (RBI Data), continues to grow, fueled by digital payments and attractive rewards programs. However, 2025 has brought notable devaluations to several top-tier credit cards, with issuers like HDFC Bank, Axis Bank, SBI Card, American Express, and Yes Bank reducing benefits such as lounge access, reward points, and cashback. These changes reflect efforts to balance profitability amid rising credit costs and regulatory shifts. This article examines the most significant devaluations of 10 popular credit cards in India, their impact on users, and strategies to adapt, ensuring you can maximize value from your card in 2025.
Understanding Credit Card Devaluation
Devaluation occurs when banks reduce a card’s benefits, such as lowering reward rates, imposing stricter perk conditions, or increasing fees. In 2025, devaluations are driven by economic pressures, regulatory changes, and competition from fintech players. With credit card spending exceeding ₹14 lakh crore in 2023 (RBI) and a 20% CAGR in issuance, banks are recalibrating offerings to manage costs while staying competitive.
Below, we analyze the devaluations of 10 prominent credit cards, based on updates from official credit cards websites and publicly available sources.
Top Credit Cards Devalued in 2025
1. HDFC Regalia
Pre-2025 Benefits:
- 4 reward points per ₹150 spent (1.33% return).
- 8 complimentary domestic lounge visits (2 per quarter, with ₹1 lakh quarterly spend).
- 6 international Priority Pass visits annually.
- 2% foreign currency markup.
2025 Devaluation:
- Lounge Access: Requires ₹1.5 lakh quarterly spend for 2 domestic lounge visits (up from ₹1 lakh). International visits reduced to 4 annually.
- Reward Points: Fuel and wallet transactions excluded from rewards.
User Impact: Frequent travelers face reduced lounge access value, and high spenders lose reward potential on fuel and wallet spends. Consider HDFC Regalia Gold for enhanced lounge benefits.
Detailed review of HDFC Regalia credit card
2. HDFC Tata Neu Infinity
Pre-2025 Benefits:
- 8 complimentary domestic lounge visits annually (2 per quarter, no spending requirement).
- 1.5% NeuCoins on Tata Neu app spends; 1% on other spends.
2025 Devaluation:
- Lounge Access: Effective June 10, 2025, requires ₹50,000 quarterly spend for lounge access vouchers.
- NeuCoins: Utility bill payments and fuel spends excluded from earning NeuCoins.
User Impact: E-commerce shoppers using Tata Neu lose seamless lounge access and rewards on everyday spends, reducing the card’s appeal for smaller transactions.
3. SBI Card Elite
Pre-2025 Benefits:
- 5 reward points per ₹100 on dining, hotels, and foreign transactions.
- Unlimited domestic and 6 international lounge visits.
- Annual fee of ₹4,999, waived with ₹10 lakh annual spend.
2025 Devaluation:
- Reward Points: Dining reward rate reduced to 3 points per ₹100; fuel spends excluded.
- Lounge Access: International visits capped at 4 annually; domestic access now requires ₹2 lakh quarterly spend.
User Impact: High spenders and luxury travelers face diminished dining rewards and lounge access, making the card less attractive for premium users.
Detailed review of SBI Elite Card.
4. Air India SBI Signature
Pre-2025 Benefits:
- 30 reward points per ₹100 on Air India spends; 15 points on other spends.
- Complimentary Air India lounge access and milestone benefits.
2025 Devaluation:
- Reward Rate: Effective March 31, 2025, reward points reduced to 10 per ₹100 for Air India spends and 5 per ₹100 for others.
- Discontinuation: No new issuances post-October 2024 due to Air India-Vistara merger.
User Impact: Frequent Air India flyers lose significant reward value, prompting a shift to other travel-focused cards.
5. American Express Gold Charge Card
Pre-2025 Benefits:
- 1 Membership Rewards point per ₹50 spent, including fuel.
- Milestone bonuses based on transaction count.
2025 Devaluation:
- Fuel Rewards: Effective June 12, 2025, no Membership Rewards points for fuel purchases (petrol, diesel, CNG), though transactions count toward milestones.
- Redemption Restrictions: Stricter conditions for redeeming points on certain categories.
User Impact: Commuters and small business owners lose reward potential on fuel, reducing the card’s value for daily expenses.
6. Axis Bank Atlas
Pre-2025 Benefits:
- High reward rate on direct hotel/airline bookings.
- Unlimited international lounge access.
- 1% forex markup fee.
2025 Devaluation:
- Lounge Access: Capped at 8 international visits annually; discontinued for some variants like Axis Neo (effective July 1, 2025).
- Reward Points: Reduced rates on non-travel spends.
User Impact: Travelers lose value on lounge access and non-travel rewards, diminishing the card’s appeal for frequent flyers.
7. Axis Bank ACE
Pre-2025 Benefits:
- 5% cashback on Google Pay, Swiggy, Zomato, Ola.
- 4 domestic lounge visits annually.
- Annual fee of ₹499, waived with ₹2 lakh spend.
2025 Devaluation:
- Cashback Caps: 5% cashback on Flipkart and Cleartrip capped at ₹4,000 per quarter (effective June 20, 2025).
- Lounge Access: Discontinued entirely.
User Impact: Online shoppers and occasional travelers lose lounge access and face capped cashback, reducing savings on daily spends.
8. Yes Bank KIWI
Pre-2025 Benefits:
- Competitive cashback on dining, grocery, and online spends.
- Flexible redemption options.
2025 Devaluation:
- Cashback Restrictions: Stricter conditions for cashback accrual and redemption (effective June 1, 2025).
- Reward Exclusions: Utility bills and select merchant categories excluded.
User Impact: Daily spenders face reduced returns on dining and groceries, making the card less competitive for routine expenses.
9. HDFC Diners Club Black
Pre-2025 Benefits:
- 5 reward points per ₹150 spent.
- Unlimited domestic and international lounge access.
- Annual fee of ₹10,000, waived with ₹5 lakh spend.
2025 Devaluation:
- Reward Points: Fuel and wallet transactions excluded from rewards.
- Lounge Access: Domestic access requires ₹2 lakh quarterly spend; international visits capped at 8 annually.
User Impact: Premium users lose value on lounge access and diverse spends, impacting luxury travelers.
/HDFC Diners Club Black Credit Card Review – Feature & Benefits
10. Amazon Pay ICICI Credit Card
Pre-2025 Benefits:
- 5% cashback for Prime members, 3% for non-Prime on Amazon.in purchases (unlimited, excluding e-books, gift cards, and utility payments at 2%).
- 2% cashback on 100+ Amazon Pay partners.
- 1% cashback on other non-EMI spends, excluding fuel and rent.
- No annual fee.
2025 Devaluation:
- Reward Exclusions: No new devaluations reported for cashback rates or caps in 2025. Fuel, EMI, rent, and select categories (e.g., digital gold) continue to be excluded from cashback, consistent with prior terms (ICICI Bank).
- Lounge Access Addition: New one-time domestic lounge access for Prime members spending ₹75,000 between March 26 and June 25, 2025, available July 1 to September 30, 2025.
User Impact: Amazon-centric shoppers, especially Prime members, retain unlimited 5%/3% cashback on Amazon.in, but non-Prime users or those with excluded spends see no change in value. The lounge access addition is a minor perk for high spenders.
/Amazon Pay ICICI Credit Card Review and Benefits
Why Are Devaluations Happening?
- Economic Pressures: Rising NPAs (SBI Cards’ gross NPA at 3.08% in Q1 2025) and credit costs push banks to tighten benefits.
- Regulatory Changes: RBI’s stricter issuance norms and focus on financial inclusion (post-COVID slowdown) drive cost management.
- Market Dynamics: With 300 million monthly transactions and UPI’s dominance, banks prioritize cost-effective offerings.
- Fintech Competition: Players like Slice and OneCard offer low-fee, innovative cards, forcing traditional banks to adjust premium perks.
Impact on Cardholders
- Travelers: Cards like HDFC Regalia, SBI Card Elite, and Axis Atlas lose value due to capped lounge access and stricter thresholds, impacting frequent flyers.
- E-commerce Shoppers: While Amazon Pay ICICI retains its appeal, cards like Axis ACE face capped cashback, reducing savings for online shoppers.
- Premium Users: HDFC Diners Club Black and American Express Gold Charge Card are less accessible due to exclusions and conditions.
- Everyday Spenders: Axis ACE and Yes Bank KIWI offer reduced returns, affecting budget-conscious users.
Tips to Navigate Devaluations
- Reassess Spending: Align your card with your habits. For example, IndusInd Tiger offers 8 domestic and 2 international lounge visits with no annual fee.
- Explore Fintech Cards: IDFC FIRST Millennia (lifetime-free, 9% p.a. interest) or OneCard provide competitive rewards.
- Monitor Updates: Check bank websites or apps for policy changes and cashback offers.
- Optimize Rewards: Focus on eligible categories (e.g., dining, travel) and redeem points promptly.
- Consider Switching: If fees outweigh benefits (e.g., HDFC Diners Club Black’s ₹10,000), explore lower-fee options or negotiate upgrades.
- Responsible Usage: Maintain a credit utilization ratio below 30% and pay balances in full to avoid 36–42% APRs.
Responsible Credit Card Use
With a 25% rise in credit card fraud in 2023 and 40% of first-time users unaware of interest charges, practice:
- Full balance payments to avoid high interest.
- Vigilance against phishing and fraud in digital transactions.
Conclusion
The 2025 devaluations have reshaped India’s credit card market, impacting cards like HDFC Regalia, SBI Card Elite, and Axis ACE with reduced lounge access, reward exclusions, and stricter conditions. The Amazon Pay ICICI Credit Card remains a strong option for e-commerce shoppers with its unlimited cashback, though other cards require careful evaluation. Verify terms on bank websites (e.g., ICICI Bank, HDFC Bank) to stay updated. Is your card affected? Share your strategies in the comments to navigate these changes.
Sources: RBI Data 2024.
FAQ
Q: Why are Indian credit cards being devalued in 2025?
A: Due to rising NPAs, regulatory norms, and competition from fintech players, banks are reducing benefits on premium cards.
Q: Which Indian credit cards lost lounge access in 2025?
A: HDFC Regalia, Axis ACE, and SBI Card Elite have reduced or capped lounge access benefits this year.
Q: Should I close my credit card after devaluation?
A: Not necessarily. Evaluate your usage vs. fees. Consider switching to lower-cost cards or fintech alternatives.