Credit cards are an essential part of financial transactions today, offering convenience, rewards, and exclusive perks. However, starting April 1, 2025, several banks in India are making significant changes to their credit card benefits, fees, and policies. These modifications will impact lounge access, reward programs, and spending requirements, affecting millions of users.
New Credit Card Rules from April 1
| Key Change | Details |
|---|---|
| Vistara Co-Branded Credit Cards | Discontinuation of milestone benefits, changes in reward point structures |
| ICICI Bank Lounge Access Rule | ₹75,000 minimum spend per quarter required for complimentary lounge access |
| RuPay Debit Select Card | New perks, including gym, golf, and OTT subscriptions |
| UPI Number Implementation | Banks to regularly update databases for seamless transactions |
| Stricter RBI Lending Norms | Higher capital requirements reducing credit card loan availability |
The upcoming April 1, 2025, credit card rule changes will significantly impact travel benefits, lounge access, and loan approvals. While some perks are being reduced, new opportunities—like RuPay Debit Select perks—are emerging. To stay ahead, review your credit cards, adjust your spending habits, and explore alternatives that align with your lifestyle.
What Are the New Credit Card Rules?
1. Vistara Co-Branded Credit Cards Losing Key Benefits
With Vistara’s merger with Air India, co-branded Vistara credit cards from IDFC First Bank and SBI Cards are undergoing changes:
- IDFC First Bank:
- No more annual milestone ticket vouchers after March 31, 2025.
- Cardholders can still earn and redeem Maharaja Points until March 31, 2026.
- The card will be phased out after 2026.
- SBI Vistara Cards:
- No complimentary economy/premium ticket vouchers on renewal from April 1, 2025.
Tip: If you rely on these cards for free flight tickets, consider switching to an alternative travel rewards card.
2. ICICI Bank Lounge Access Now Requires Minimum Spending
Previously, ICICI credit card holders enjoyed complimentary airport lounge access. But from January 1, 2025, new conditions apply:
- You must spend ₹75,000 in the previous calendar quarter to qualify for free access.
- For example, to get April-June lounge access, you must spend ₹75,000 between December 26, 2024 – March 25, 2025.
Tip: If lounge access is important, track your spending and consider alternative cards that still offer unrestricted access.
3. RuPay Debit Select Card’s New Perks
The National Payments Corporation of India (NPCI) has upgraded RuPay Debit Select Cards to include premium benefits:
- Complimentary domestic & international lounge access
- Personal accident insurance
- Gym memberships, golf lessons, spa sessions
- OTT subscriptions and cab vouchers
Tip: If you don’t have a premium credit card, a RuPay Debit Select Card can be a great alternative for exclusive perks.
4. UPI Number Implementation for Better Transaction Security
To enhance seamless transactions, banks must regularly update their databases:
- Disconnected/surrendered mobile numbers will be removed from UPI.
- This ensures reduced errors in digital transactions.
Tip: Keep your mobile number updated with your bank to avoid UPI disruptions.
5. Stricter RBI Lending Norms Affecting Credit Card Loans
Since late 2023, the Reserve Bank of India (RBI) has imposed higher capital requirements on banks for personal and credit card loans:
- Banks are now more selective in approving new credit cards and loans.
- Loan growth has declined for seven consecutive months.
- Borrowers with low credit scores may find it harder to get approved.
Tip: If you rely on credit card loans, improve your credit score and explore alternative financing options.
see also: How to Invest in FDs for Maximum Benefit
How These Changes Affect You
| Change | Impact |
|---|---|
| Vistara Credit Card Modifications | No more milestone flight vouchers; reduced benefits |
| ICICI Lounge Access Update | Requires spending ₹75,000 per quarter for access |
| RuPay Debit Select Card Perks | More premium benefits, making it an alternative to credit cards |
| UPI Number Implementation | More secure transactions, fewer failed payments |
| Stricter Lending Norms | Harder to get new credit card loans, stricter approval criteria |
What Should You Do Now?
Review Your Credit Cards: Check if your favorite benefits are affected.
Switch Cards if Necessary: If you rely on flight benefits, explore alternative travel cards.
Meet New Lounge Access Criteria: Spend accordingly to retain perks.
Check Your UPI Details: Ensure your mobile number is updated with the bank.
Plan for Stricter Credit Norms: Maintain a high credit score to secure future loans.
see also: Kisan Vikas Patra Scheme 2025: How Your Money Doubles in Just 115 Months!
New Credit Card Rules FAQs
1. Why are credit card benefits changing from April 1?
Banks are adjusting benefits due to mergers (Vistara-Air India), revised lending policies (RBI), and market changes.
2. How can I still get free airport lounge access?
Spend ₹75,000 per quarter on ICICI cards or choose alternative credit cards with unrestricted access.
3. Will existing rewards points on Vistara cards be lost?
No, you can redeem Maharaja Points until March 31, 2026, but no new milestone benefits will be added.
4. What are my best alternatives for travel rewards now?
Cards like Axis Vistara, HDFC Diners Club, or Amex Platinum still offer strong travel perks.
5. How do I maintain eligibility for credit card loans?
Improve your credit score, reduce existing debt, and maintain a low credit utilization ratio.
