Updated 20 March 2026 at 13:30 IST
April 1 Credit Card Changes: Key Updates on Utility Payments, Lounge Access, and Rent Rewards for Indian Users
Starting April 1, 2026, major Indian banks including SBI Card, ICICI Bank, and Axis Bank will implement significant changes to credit card rules. Key updates include new spending milestones for airport lounge access, the discontinuation of reward points on rent payments, and new caps on utility and insurance spending rewards.
Indian credit cardholders are bracing for a significant shift in their monthly spending dynamics as several major lenders, including SBI Card and ICICI Bank, are set to implement new service terms effective April 1, 2026.
The changes, arriving at the start of the new financial year, primarily target reward point structures, lounge access eligibility, and fees associated with high-value transactions such as rent and utility payments. The move is a concerted effort by banks to protect margins as the cost of funds rises and the reward-to-spend ratio becomes increasingly unsustainable.
SBI Card
India’s largest pure-play credit card issuer, SBI Card, has notified customers of two critical updates. Starting April 1, the accrual of reward points on rent payments will be discontinued for several premium and base-level cards. Additionally, the bank is narrowing the window for reward point redemption on certain categories to steer consumers toward direct spending.
ICICI Bank
ICICI Bank is shifting its strategy toward "spend-linked" benefits. From the new month, complimentary domestic airport lounge access will no longer be an unconditional perk for many card variants. Instead, users will need to have spent a minimum of ₹35,000 in the preceding calendar quarter to unlock lounge access for the following quarter. This marks a growing industry trend where luxury perks are being locked behind higher spending tiers.
Axis Bank and Yes Bank
Axis Bank and Yes Bank are also joining the overhaul. Axis Bank has announced it will cap reward points on insurance and utility bill payments, categories that previously allowed users to accumulate significant points on essential spending. Meanwhile, Yes Bank is reportedly increasing the transaction fee for rent payments made via third-party platforms to 1% plus GST, mirroring a move made by HDFC Bank earlier this year.
Published By : Shourya Jha
Published On: 20 March 2026 at 13:30 IST