New Credit Card Rules: Starting June 1, 2025, millions of credit card users with Kotak Mahindra Bank, Axis Bank, and HDFC Bank may face higher costs.
These banks are changing how rewards are given, adjusting fuel charges, and limiting airport lounge access.
If you often use your card to pay for fuel, rent, school fees, insurance, bills, or wallet recharges, it’s important to understand these changes. In many cases, reward points will stop or be limited by amount or time.
Kotak Mahindra Bank
Kotak is making big changes to how rewards work on its credit cards:
For instance, the Kotak Privy League Signature Card will no longer offer reward points on rent or fuel payments.
For utility bill payments, reward points will be given only for spending up to ₹75,000 in one billing cycle.
More changes include:
A 1% transaction fee will apply if spending crosses limits in categories like rent, fuel, education, wallet recharges, utilities, or online gaming.
Example: Spending more than ₹75,000 on utilities or ₹50,000 on fuel will trigger this fee.
Interest rates are also rising. The new monthly rate is 3.75%, which adds up to 45% yearly.
A dynamic currency conversion (DCC) fee of 2% to 5% will now apply on international purchases.
Charges for failed auto-debits will increase.
The Minimum Amount Due is now set at 1% of the total outstanding balance.
Axis Bank
From June 20, 2025, Axis Bank will also change its reward system:
Previously, rewards were based on merchant category codes. Now, they’ll be based on the type of expense.
This makes it easier to see what earns rewards, but some expenses may no longer qualify.
Good news:
New Swiggy deals are being added, which can help frequent food delivery users.
HDFC Bank
HDFC is changing its lounge access rules, especially for Tata Neu Infinity Credit Card holders:
From June 10, 2025, you won’t get lounge access just by swiping your card.
You must spend ₹50,000 every quarter to get a lounge access voucher by SMS or email.
The voucher must be claimed within 120 days and used within 180 days.
Domestic lounge visits are limited to 8 per year. International lounge access stays the same.
RuPay cardholders will now pay an extra $3.25 per international lounge visit.
In Summary:
Starting June 2025, these banks will:
Reduce or remove reward points for many everyday payments
Add new transaction charges
Restrict lounge access
Increase interest rates and other fees
If you use your credit card for paying bills, fuel, education, or other services, review your card’s updated terms.
These changes could mean higher costs or fewer benefits, so plan your spending carefully.
