From June 1, 2026, several new financial rules have come into effect across India. These changes are related to banking, credit cards, investments, and everyday spending.
They can directly impact how people manage their money and expenses.
Among all the updates, credit card rule changes are getting the most attention.
This is because they affect millions of users who regularly use cards for shopping, bills, and online payments. Reward systems, fees, and benefits have all been revised by banks.
Credit Card Reward Points Rules Have Changed
Banks have updated how reward points are earned on credit cards. Spending on fuel, rent, insurance, utility bills,
and other daily expenses will not give the same benefits as before. In many cases, reward points have been reduced or limited.
Kotak Mahindra Bank has made some of the biggest changes. From June 1, new limits have been added on reward points for rent, fuel, insurance, and utility bill payments.
The value of reward points at the time of redemption has also been reduced.
A 1 percent transaction fee will now apply on rent and education payments. A similar charge will apply after crossing a spending limit on utility bills, fuel, wallet loading,
and online gaming. However, selected premium Kotak cards will still offer fuel fee waivers.
Changes in Other Banks: Interest Rates, Rewards, and Alerts
Other banks have also made important updates to their credit card policies.
Bank of Baroda has increased the interest rate on unpaid credit card dues. For its co-branded One credit card, the monthly interest rate has increased from 3.49 percent to 3.75 percent, effective June 23, 2026.
This means carrying outstanding balances will become more expensive.
ICICI Bank has removed the 1 percent reward benefit on rent payments for Amazon Pay credit card users from June 18, 2026. This will reduce benefits for customers who previously earned rewards on rent transactions.
HDFC Bank has changed its SMS alert system from June 25, 2026. Now, SMS alerts will not be sent for every small transaction. They will mainly be sent for UPI payments
and for transactions above ₹100 or ₹500 depending on the case. However, full transaction details will still be available through email.
What This Means for Credit Card Users
These changes are mainly aimed at cost control and updating reward structures. However, for customers, they mean fewer rewards and more careful spending.
Users are advised to check their credit card rules carefully and stay updated through bank apps or websites. Paying bills on time and using reward points wisely will help avoid extra charges and reduce losses.
