HDFC Bank Revises Credit Cards Reward and Fees Structure Effective From January 2023

If you are having an HDFC Bank Credit Card, here are some important updates for you. The HDFC Bank has recently announced some changes in its rewards program and fee structure. With effect from January 2023, there would be a maximum cap on the reward points that can be redeemed per calendar month via the HDFC bank’s Smart Buy portal on selected categories. The capping is different for different cards and it varies according to the categories as well. Apart from this, the card issuer has also come up with certain changes in its fee structure that would be applicable from the new calendar year 2023. For detailed information about the same, keep reading:

Changes in The Rewards Program

With the recent update, HDFC Bank has announced the following changes in its credit cards rewards program:

Capping On the Number of Reward Points Redemption

The Reward Points earned using the HDFC Bank Credit Cards can be redeemed against several options, including flight/hotel bookings, vouchers, products, and cashback. With its recent update, HDFC Bank has put a maximum cap on Reward Points that can be redeemed against a particular category in a calendar month. These changes will be applicable on HDFC Credit Cards from 1st January 2023, and you can understand the same in detail via the following table:

Apart from this, there are certain restrictions on the redemption of HDFC Credit Card reward points against the card’s statement balance. HDFC Bank also provides you with the option to redeem your earned Reward Points against your credit card bill, but there is a maximum cap on the number of rewards that can be redeemed for cash back in a particular month. With effect from February 1, 2023, the following restrictions would be applicable on the reward points redemption against cashback:

•  HDFC Bank Millennia, Easy Emi, Bharat, Pharmeasy, and Paytm Credit Cards: A maximum of 3,000 Reward Points can be redeemed against cashback every calendar month.
• All Other HDFC Credit Cards: A maximum of 50,000 Reward Points can be redeemed against cashback every calendar month.

Along with this, the redemption of Reward Points can only be made against up to 70% of the total value of selected vouchers/products. The rest of the amount needs to be paid from the respective credit card. This restriction would be applicable to all HDFC bank Credit cards, except Infinia and Diners Club Black Card, w.e.f February 1, 2023.

Categories Ineligible For Reward Points

The purchases made across the following categories will not be eligible for Reward Points with the HDFC Bank Credit Cards:

• Rent Payments
• Government-related and education-related transactions will not earn Reward Points on all HDFC Credit Cards except Business Regalia, Business Regalia first, Business Money back, CSC small business money back, Paytm Business, Flipkart Business, Retailio, Best Price Save Smart, Best Price Save Max and Pinelabs Credit Cards.
• The Reward Points on grocery purchases will also be capped as follows:
  – 2,000 Reward Points per calendar month for HDFC Infinia, Diners Black, Regalia, Regalia Gold, Regalia first, Business Regalia, Business Regalia first, Diners Privilege, Diners Premium, Diners Club miles, Tata Neu Infinity cards.
  – 1,000 Reward Points per calendar month for all other HDFC Credit Cards.

Read More: HDFC Bank Revises Reward Points Earning on Rental Payments Using Credit Cards

Changes in the Fee Structure

From January 1, 2023, the following charges would be applicable to the respective transactions made through the HDFC bank Credit Cards:

– Rent payments through third-party merchants: A 1% convenience fee would be chargeable from the second rent payment in a calendar month. Therefore, no fee would be applicable on the first rent payment in a particular month, but a 1% fee would be levied after that for transactions made in the same month.
– Dynamic & Static Conversion markup fee: If the HDFC Credit Cardholders make offline/online transactions in Indian currency at foreign locations, a fee of 1% would be chargeable. This fee would also be applicable to transactions made at stores that are located in India but registered overseas.

Check more details here.

Bottom Line

There are already a few restrictions on the reward points earning via the HDFC bank’s SmartBuy portal and now a capping has also been put on the reward points redemption. However, the number of reward points that are allowed to redeem each month is not really very less and you can easily save a decent amount with this restriction as well. Talking about the changes in fees & charges, a nominal convenience fee of 1% would be levied on rent payments, but not on every rent payment. If you make only a single rent transaction in a month, you will not be charged any such fee as it s applicable from the second transaction in a month. In case of any further doubts, feel free to ask us in the comment section below!