From SBI to Amex: Banks Revise Credit Card Perks, Lounge Access Cut

From American Express to ICICI Bank and State Bank of India, credit card issuers are revising reward structures, lounge access rules and milestone benefits.

The latest trigger came on 4 February, when American Express informed users of a major change to its Platinum Travel Credit Card, effective from 9 March 2026.

The revision replaces a partly manual bonus system with an automated structure that demands higher spending for similar benefits. The move follows a series of similar actions by domestic banks over the past year.

What Has Changed Across Major Credit Card Products?

American Express Platinum Travel

• Earlier: ₹4 lakh annual spend earned 25,000 Membership Rewards points + ₹10,000 Taj Experiences e-Gift Card. Nearly half of the reward points required manual activation.

• From 9 March: ₹4 lakh spend earns 10,000 points only.

• The Taj voucher now requires a ₹7 lakh annual spend.

ICICI Bank Credit Cards

Some changes become effective between 15 January and 1 February:

• Complimentary movie tickets removed on Platinum cards.

• Airport lounge access conditions revised.

• A ₹3,000 one-time fee introduced for the add-on Emeralde Metal card.

• Reward points are capped on transactions above ₹20,000 on select cards.

• Dynamic currency conversion charges increased.

State Bank of India (SBI) Cards

• From 10 January, complimentary domestic lounge visits reduced on 5 on its cards from 8 per year to 4 per year (quarterly access reduced from 2 visits to 1 visit).

Scapia Card

• Earlier: ₹10,000 (Visa) or ₹15,000 (RuPay) monthly spend unlocked unlimited lounge access.

• From 27 February: ₹20,000 monthly spend required across all networks.

• Lounge access criteria standardised across Visa and RuPay.

Axis Bank Credit Cards

• The Rewards programme was restructured on 20 June 2025.

• Shifted from merchant category code basis to internal transaction categories (e.g., dining, travel).

• Reward points expire 30 days after card closure.

• Points may be forfeited from 1 October if minimum dues remain unpaid for over 90 days.

• However, not all of the changes went as planned.

After receiving strong public criticism, HDFC Bank decided to reconsider the decision to lower reward multipliers on SmartBuy coupons for Infinia cards.

Why Are Issuers Redesigning Reward Structures?

Industry participants point to a rise in defaults and the cost of premium features like access to airport lounges as the primary reasons.

Reserve Bank of India (RBI) data shows American Express had 13.4 lakh outstanding cards as of December 2025, leading among foreign banks in India.

Globally, its network ranks next to China’s UnionPay and US-based Mastercard and Visa in scale. Amex cards are typically positioned as premium products, with users known for higher average ticket sizes.

Also Read - SEBI Cracks Down On Financial Influencers With AI-Based Real-Time Surveillance

How Are Cardholders Responding To The New Criteria?

For many users, the revised milestones require spending adjustments.

Some users plan to carefully route payments or combine charges in order to meet higher standards. Some people are reconsidering if the annual premium card fees are needed.

The broader takeaway is that reward programmes evolve. Perks such as milestone bonuses, lounge visits and category multipliers are subject to periodic review. Issuers typically provide advance notice, but the economic value attached to rewards can change.

As issuers adjust terms in response to cost pressures and risk management priorities, cardholders may need to review their usage patterns to align with updated structures.

Sources:

ET

Var India