Money Clarity

Your credit card got worse in 2026. Here is what changed.

Through 2026 the major Indian issuers moved in the same direction: lower earn rates, harder caps, and benefits tied to spending thresholds rather than granted outright. If you chose your card before these changes, the reason you chose it may no longer be true.

What SBI Card changed

Effective 1 April 2026, the changes were to redemption mechanics rather than headline earn rates, which makes them easy to miss.

Points redeemable only in multiples of 4,000, so smaller balances sit stranded
Monthly cap of 60,000 points across several cards
More excluded categories, and faster exhaustion of the caps that remain
Net effect is a lower realised return than the advertised rate implies

What HDFC Bank changed

Effective 15 May 2026, with lounge rules following on 1 July.

Regalia Gold earn rate moved from 4 points per Rs 150 to 5 points per Rs 200 - a lower effective rate
Lounge access now requires Rs 60,000 of quarterly spend to unlock 3 domestic visits
Diners Club Privilege lounge vouchers also gated behind a Rs 60,000 quarterly threshold
A 1.75% dynamic currency conversion markup on international transactions, and a Rs 199 card reissuance fee

What Axis Bank changed

Axis moved away from premium partnerships toward spend-linked cashback.

Premium airline and hotel partnerships cut, including Accor, Marriott and Qatar Airways
Complimentary airport lounge access removed on cards including Airtel Axis
Structure shifted toward cashback with higher spending thresholds

What to do about it

A devaluation is only a problem if you keep paying for the old proposition.

Recalculate what your card earns you now, on the new rates and caps, not the ones you signed up for
Compare that against the annual fee, and treat threshold-gated benefits as worth zero unless you reliably hit the threshold
If you hold points, redeem rather than accumulate - devaluations tend to continue in one direction
A card whose value depended on a benefit that has been withdrawn is worth reconsidering, not defending

Common questions

Why did my credit card rewards drop in 2026?

The major issuers all tightened during 2026. SBI Card restricted redemption to multiples of 4,000 points with a 60,000 monthly cap from 1 April. HDFC cut the Regalia Gold earn rate from 4 points per Rs 150 to 5 points per Rs 200 from 15 May and gated lounge access behind Rs 60,000 quarterly spend. Axis dropped premium travel partnerships and removed lounge access on several cards.

Should I close a card that has been devalued?

Not automatically. Closing a long-held card reduces your average account age and your total credit limit, both of which can affect your score. If the card has no annual fee, keeping it open and unused is usually better than closing it. If it carries a fee that the new rewards no longer justify, downgrading to a free variant is often better than closing outright.

Cards get repriced and customers rarely get told in a way they notice. Rerun the arithmetic on the current terms once a year, and treat any benefit gated behind a spending threshold as worth nothing unless you actually hit it.

Written by Danish Mirza, founder of Unyfy. 14 years in Indian lending and collections at Standard Chartered, Barclays, Ola Money and Uni Cards.
Last reviewed 2026-09-08.