New Delhi:
IDFC First Bank has sent out notices to its credit cardholders, informing them of forthcoming reductions in credit card facilities.
Effective May 1, 2024, the bank will implement changes across all cards except the premium IDFC First Private Credit Card.
This move follows similar actions by other banks including Axis Bank, Yes Bank, and ICICI Bank.
Key Changes Taking Effect on May 1
IDFC First Bank will be reducing reward points on credit card transactions while also adjusting minimum spending requirements for airport lounge access.
Additionally, alterations to rules governing bill payments for water, electricity, and phone services will come into effect on the same date.
Impact on Customers
The reduction in reward points, particularly for online payments up to Rs 20,000 in one statement cycle,
may affect customers who heavily rely on credit card benefits.
Previously six times, reward points for these transactions will now be capped at three times.
However, customers spending above Rs 20,000 monthly will still enjoy 10 times the reward points.
Furthermore, rewards points for education, wallet load,
and government services have also been decreased to three times.
Surcharge Imposition to Deter Misuse
To curb misuse of credit cards, IDFC First Bank will impose a 1% surcharge on utility bill payments exceeding Rs 20,000 in a single statement cycle.
This surcharge will be subject to an 18% GST. Sumant Mandal, founder of Technofino, commented that this measure aims to deter potential misuse.
Changes in Airport Lounge Access
The bank has trimmed airport lounge access benefits for select credit cardholders.
For instance, IDFC First Select Credit Cards, which previously offered four domestic lounge accesses per quarter, will now provide only two.
Similarly, customers with First Wealth Credit Cards will see their access reduced from four to two times per quarter.
Relief for Certain Customers
Some IDFC First Bank credit cardholders, including those with First Classic, First Millennia, First Select, First Wealth, and First Wow credit cards, enjoy lifetime-free benefits.
Despite the adjustments, these customers won’t face renewal fees, providing them with some relief amidst the changes.
