With the new financial year beginning on April 1, several banks are expected to introduce important changes to credit card policies. These updates could affect reward points, fees, interest rates, and spending benefits. Cardholders are advised to review the revised terms carefully to avoid surprises.
Here are five major changes that could come into effect:
1. Revision in Reward Points Structure
Banks may revise the way reward points are earned and redeemed.
- Reduced reward rates on categories like rent payments, wallet loading, and utility bills
- Capping of monthly reward points
- Changes in redemption value
This could directly impact customers who rely on reward points for travel or cashback benefits.
2. Higher Fees on Certain Transactions
Some financial institutions may introduce or increase fees on:
- Rent payments through credit cards
- EMI conversions
- Late payments
- Fuel surcharge waivers
These adjustments are aimed at reducing high-risk or low-margin transactions.
3. Changes in Minimum Due Calculation
Banks may revise how the minimum amount due is calculated.
- A higher minimum due could be required
- More clarity on interest charges for partial payments
This is designed to encourage responsible borrowing and reduce long-term debt accumulation.
4. Lounge Access Policy Updates
Complimentary airport lounge access could now be linked to:
- Minimum spending thresholds per quarter
- Specific card variants only
Cardholders who do not meet the spending criteria may lose free lounge privileges.
5. Revised Interest Rates and Charges
Interest rates (APR) and penalty charges may be adjusted based on:
- Customer credit behavior
- Risk profiling
- Market conditions
Customers with delayed payments or lower credit scores may see higher charges.
What Should Cardholders Do?
- Check official communication from your bank
- Review updated terms and conditions
- Plan spending to maximize benefits
- Avoid carrying forward unpaid balances
Conclusion
The new financial year often brings policy revisions, and credit card users should stay informed. Understanding these changes before april 1 can help you avoid extra charges and optimize your benefits.
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.
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