IDFC First Bank will cut Credit Card Benefits starting May 1

IDFC First Bank has recently made some changes to its credit card offerings, which will come into effect from May 1, 2024. These changes will affect the IDFC Credit Card reward points structure, airport lounge access, and the terms for utility and rent payments.

Under the new reward points scheme, the number of points allocated for online spending up to Rs.20,000 within a billing cycle will be reduced from six to three times. However, customers will still receive 10 times reward points on incremental expenditures exceeding Rs.20,000 per month. Additionally, reward points for transactions related to education, wallet reloads, and government services will also be adjusted three times. To make utility bill payments more convenient, IDFC First Bank will impose a fee of 1% plus GST on aggregate payments exceeding Rs.20,000 made via credit cards. However, bills below this threshold will remain exempt from the surcharge. It's important to note that select cards, including the FIRST Private Credit Card, LIC Classic Credit Card, and LIC Select Credit Card, will not be subject to this utility surcharge.

Here's a closer look at how IDFC Rewards points have changed:

IDFC First Bank has changed its policy for charging extra fees on credit card payments for utility bills. Starting from May 1, if you pay a utility bill of more than Rs.20,000 using your credit card, the bank will charge you an additional fee of 1% plus Goods and Service Tax (GST) on the total amount. Bills below this amount will not be charged anything extra. However, if your bill exceeds this limit, you will have to pay a fee of 1% plus GST. Note that this extra charge will not be applicable to the FIRST Private Credit Card, LIC Classic Credit Card, and LIC Select Credit Card.

There are some changes happening with the reward points system. If you use your card to buy things online, you usually get six times the reward points. But now, that will be reduced to three times for purchases up to Rs.20,000 in a month. However, if you spend more than Rs.20,000 per month, you will still get 10 times the reward points for the additional amount you spend. Also, if you use your card for education, wallet reloads, or government services, you will now get three times the reward points instead of six times.

There are some changes coming up for IDFC customers who have credit cards that offer free access to airport lounges. If you have an IDFC First Select Credit Card, you will now be able to visit domestic airport lounges only two times per quarter instead of four times. And if you have a First Wealth Credit Card, you will now be able to visit both domestic and international airport lounges two times per quarter instead of four times.

Starting from May 1, IDFC First Bank is going to increase the charges for rental transactions. This means that people who use their credit cards to pay rent will have to pay Rs.249 per transaction or 1% plus 18% GST, whichever is higher. The bank is making these changes to keep up with the changing market conditions and competition. The aim is to offer credit card services that align with the current economic situation.

This move by IDFC First Bank aligns with recent industry trends, as other major players like Axis Bank, ICICI Bank, and Yes Bank have also revised their credit card benefits. The reasons for these adjustments can be anything from strategic decisions to program sustainability to market conditions.

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