The golden era of effortless travel rewards on credit cards has ended as banks steadily devalued some of the country's most rewarding travel cards over the past year. According to reports from Mint, banks have capped bonus points, removed popular transfer partners, and made it harder to earn free flights and hotel stays. Several former favourites have slipped down the pecking order, while new contenders have emerged as stronger alternatives. The changes have fundamentally altered the landscape for travel rewards, with experts noting that the unusually generous rewards seen during the Magnus boom were never sustainable and banks are now returning to economically viable reward structures.
Most premium cards now require either a high monthly salary or substantial total relationship value (TRV) with the issuing bank. As reported by Mint, HDFC Infinia requires a monthly salary of ₹5 lakh or ₹50 lakh TRV, while HSBC Premier demands ₹3 lakh monthly salary or ₹30 lakh TRV. Axis Magnus Burgundy requires ₹30 lakh TRV and charges an annual fee of ₹35,400 (including GST). Credit card expert Akash Gupta emphasizes that even if annual card spending is below ₹15 lakh, qualifying for a premium card may still make sense if the joining and renewal rewards offset the fee. For users spending below ₹10 lakh annually, cashback cards often provide better value, with travel rewards at this level typically earning only a few domestic flights or hotel nights.
The mid-spend category has experienced significant reshuffling, with HDFC Diners Club Black (DCB) Metal moving from the ₹15 lakh-plus category to ₹10-15 lakh after HDFC Bank capped accelerated SmartBuy gift voucher rewards at 3,000 points per month. According to Mint, HDFC Infinia has also been affected by similar SmartBuy restrictions and now requires annual spends of at least ₹18 lakh to retain the card. HSBC TravelOne continues to offer one of the broadest travel rewards, earning 2 RPs per ₹100 spent, which jumps to 4 RPs for travel and international spends. The card offers bonus rewards when travel bookings are made through its travel portal Hopper and provides a 15% discount on select partners like Cleartrip and Paytm, though users lose out on bonus rewards when booking on online travel aggregators. Axis Atlas has been dropped from the list as it is no longer open to new applicants, with HDFC DCB Metal and HDFC Regalia Gold replacing it in the mid-spend category.
HSBC Premier has emerged as the strongest all-round premium travel card following recent devaluations elsewhere, earning rewards on utilities and insurance up to ₹1 lakh a month, categories excluded by most rivals. As reported by Mint, Axis Magnus Burgundy remains the card of choice for very high discretionary spenders, with up to ₹1.5 lakh spent monthly earning 12 RPs per ₹200, jumping to 35 RPs for incremental spends. However, Magnus Burgundy has become an airline miles-focused card after losing Accor and Marriott Bonvoy as transfer partners. HDFC Infinia continues to be a strong premium card as it rewards on most regular spends, including insurance, education fees, and gold, making it suitable for users with ₹25-30 lakh or more in travel and discretionary spending. HSBC Premier offers a 20,000 joining reward points that can translate to at least ₹40,000 worth of Accor hotel points, more than just offsetting the ₹14,000 joining fee, making it a relatively affordable premium option.
The competitive landscape is witnessing significant shifts as emerging players challenge traditional dominance. According to The Economic Times, Federal Bank and IDFC First Bank have collectively issued over twenty-two lakh new credit cards, nearly matching HDFC Bank's own expansions. Together, they represent 21% of the 1.06 crore net cards added by the banking system during the year to June 2026. Federal Bank added 11.79 lakh cards, surpassing Axis Bank's 11.36 lakh additions, while IDFC First expanded its portfolio by 10.34 lakh cards. The four largest issuers' combined share of outstanding cards has declined by about 100 basis points to 69.9% over the past year, suggesting a noticeable change in the competitive dynamics of the credit card sector as the dominance of the top four issuers appears to be waning.
