Banks Slash Credit Card Rewards As Card Profit Margins Shrink

HDFC Bank, SBI Cards, Axis and Federal Bank are cutting reward points, lounge access and redemption benefits as credit card profitability erodes. The devaluation weakens consumer spending incentives and reshapes retail payment and loyalty economics.

— Filed Tue, 7 Jul, 2026, 13:37 IST · Source NDTV Profit · Updated

Indian banks are cutting credit card reward points, lounge access and redemption benefits as card profitability shrinks, affecting consumer spending incentives. HDFC, SBI Cards, Axis and Federal Bank have already devalued perks—relevant to retail payment and loyalty economics.