The Reserve Bank of India has introduced comprehensive new regulations for credit cards to enhance transparency and customer protection. India's credit card base has crossed 100 million active cards, according to RBI data, prompting the central bank to implement stricter compliance measures. The new rules address recurring complaints about excessive late payment penalties and delays in card closure and refunds, with the RBI observing that many issues were linked to misunderstood hidden charges and unclear billing formats. Banks cannot increase credit limits without explicit customer consent, with written or digital approval now mandatory and silence no longer treated as approval. The regulations also mandate time-bound processing of closure requests and prompt refund of unused annual fees, with delays attracting penalties for issuers.
Indian banks are implementing significant changes to credit card rewards across all segments, with major issuers implementing cuts, raising spending thresholds, and modifying loyalty transfer terms to address rising operational costs. According to reports from The Economic Times, since the start of the calendar year, major devaluations have hit multiple premium and super-premium cards, affecting all high-end cardholders regardless of issuer. The changes include ICICI Emeralde Private Metal removing some vouchers for accelerated rewards, American Express Platinum Travel increasing spend milestones for bonus rewards, and Axis Bank removing three popular transfer partners without advance notice. Under the new RBI framework, interest cannot be compounded unfairly and charges must be clearly itemised in statements, ensuring customers understand the annual percentage rate (APR).
HDFC Bank has implemented stricter retention criteria for its Infinia customers, requiring them to maintain annual spends of at least ₹18 lakh or maintain a total relationship value of at least ₹50 lakh to retain the by-invite-only metal card. As reported by The Economic Times, these changes represent a shift toward more exclusive and high-value customer segments, with banks focusing on maintaining profitability amid rising operational costs. The RBI's new rules ensure stronger grievance redressal mechanisms and protection against forced limit hikes, while penalties must be proportionate to the overdue amount and no excessive compounding on unpaid penalties is allowed.
While top issuers factor in rising costs and winnow the 'wheat' from the 'chaff', smaller private lenders and large public sector banks are making significant forays to capture higher-spending customers. According to The Economic Times, IDFC First Bank's credit card business has demonstrated strong growth since its 2021 launch, with the number of cards in force touching 4.5 million as of FY26. The bank reports that premium cards have been a big contributor to this growth, indicating successful market penetration in the competitive credit card landscape. Under the new RBI framework, banks must maintain detailed customer consent records and provide transparent Most Important Terms & Conditions (MITC), with call centres and digital platforms required to communicate RBI rules correctly to prevent mis-selling.
Latest research from Money.com.au reveals significant insights into Australian credit card usage, showing that 35% of Australians have never signed up for plastic just for the bonus points, while 15% have a card that doesn't offer rewards. The survey found that 37% of Australians are considering redeeming more of their credit card points for groceries and everyday essentials, with Gen Z leading at 42% for grocery redemptions and 45% for fuel savings. This shift reflects changing consumer priorities as cost-of-living pressures mount, with Australians increasingly using credit card rewards for practical everyday expenses rather than travel rewards. Under the new RBI rules, customers must understand the annual percentage rate (APR) and interest cannot be compounded unfairly, ensuring predictable cost structures and preventing hidden charges that could trap cardholders in revolving debt.
