IDFC First Bank is the third big bank to reduce the facilities available to customers on credit cards. Earlier, big banks like ICICI Bank and Axis had reduced the facilities available on credit cards.
Banks are reducing facilities on credit cards. Now IDFC First Bank has announced to reduce the facilities on its credit cards. It has sent an email to its customers regarding this on April 1. It is said that except the bank’s super premium IDFC First Private Credit Card, facilities have been reduced on all other cards. Before this, Axis Bank, Yes Bank and ICICI Bank have done this. What decision has IDFC First Bank taken, how much will it impact the customers, which facilities have been reduced? Let us try to know the answers to these questions.
Changes will come into effect from May 1
IDFC First Bank has reduced reward points on credit cards. The minimum card spend limit for airport lounge access has been increased. The rules for water, electricity and phone bill payment have also been changed. These changes will come into effect from May 1, 2024. Many customers make extensive use of these facilities available on credit cards. He has been shocked by this decision of the bank.
Reduction in reward points
Rewards points on online payments up to Rs 20,000 in one statement cycle have been reduced to three times. Earlier it was six times. However, customers will continue to get 10 times the reward points on spends above Rs 20,000 every month. Reward points available on payment for education, wallet load and government services have been reduced to 3 times.
Surcharge to prevent misuse
A surcharge of 1 per cent will be levied on utility bill payments of more than Rs 20,000 made through credit cards in one statement cycle. 18 percent GST will also be applicable on this. “The bank has decided to impose the surcharge to prevent misuse of credit cards,” said Sumant Mandal, founder of Technofino.
Scissors at airport lounge access
IDFC First Select Credit Cards offer four times domestic airport lounge access per quarter. This has been reduced to 2. Customers holding First Wealth Credit Cards will get access to domestic and international airport lounges twice every quarter. Earlier it was four times. The customer will have to spend at least Rs 20,000 in a month through credit card only then he will get complimentary airport lounge access in the next month.
Relief to some customers
IDFC First Bank offers some life time-free reward credit cards to its customers. These include First Classic credit card, First Millennia credit card, First Select credit card, First Wealth credit card and First Wow credit card. These credit card users will not be disappointed much, because they will not have to pay any fee on renewal of the cards.
