HDFC Bank Launches Credit Card Cashback Upgrade for Dining and Grocery Spends

HDFC Bank Enhances Cashback Categories to Reward Everyday Spending

HDFC Bank has introduced a major cashback upgrade across select credit cards, offering enhanced rewards on dining and grocery spends. The move comes as part of the bank’s ongoing effort to make credit card benefits more relevant to everyday consumers.

This new structure increases cashback percentages for spends made at restaurants, supermarkets, and food delivery apps, recognizing that Indian users are increasingly spending more on essential and lifestyle categories rather than luxury purchases.

By boosting rewards in these segments, HDFC Bank aims to position its cashback cards—especially the HDFC Millennia, MoneyBack+, and Regalia Gold—as the go-to choices for users seeking maximum value on day-to-day transactions.

What’s Changing: Higher Cashback and Broader Coverage

Under the new upgrade, HDFC Bank has revised the reward structure for select cards. Here’s an overview of the new benefits:

1. Dining Rewards Upgraded

• Cardholders will now earn up to 10% cashback or 10X Reward Points on dining spends made through partner restaurants and food delivery apps.
• HDFC Bank has partnered with major restaurant aggregators and popular food delivery apps to offer discounts and cashback offers during weekends and festive seasons.
• The reward system applies to both dine-in and online dining payments, giving flexibility to consumers.

2. Grocery Cashback Enhanced

• Users will now receive up to 5% cashback on grocery spends made at supermarkets, hypermarkets, and leading online platforms like BigBasket, Blinkit, and Amazon Pantry.
• Some premium card variants, such as Regalia Gold, will offer additional monthly milestone rewards for grocery purchases exceeding ₹10,000.
• Cashback is either credited directly to the statement or converted to reward points redeemable for future purchases or travel vouchers.

3. Weekend Bonus Offers

• During select weekends, HDFC Bank cardholders can earn extra 5% cashback on dining and grocery spends above ₹2,000.
• The bank plans to rotate partner restaurants and stores each quarter, keeping offers fresh and relevant.

Key Cards Included in the Cashback Upgrade

HDFC Bank’s cashback enhancement applies across multiple cards, each tailored for a specific spending pattern.

The upgrade applies automatically to existing cardholders, while new customers applying after the update will receive the new structure by default.

Why Dining and Grocery Categories Matter Most

In India’s evolving credit card market, everyday spending has emerged as the strongest growth driver. According to recent data from the Reserve Bank of India, over 40% of monthly credit card spends now come from categories like groceries, food delivery, and utilities—up from 25% just three years ago.

By enhancing cashback on these segments, HDFC Bank is acknowledging the shift from luxury to practical spending. The strategy also helps the bank:

• Boost card usage frequency, since people dine or buy groceries multiple times a month.
• Improve retention, as consistent small rewards keep users engaged.
• Drive digital payments, particularly through the bank’s platforms such as SmartBuy and PayZapp.

How This Upgrade Benefits Consumers

The new cashback model is designed for urban and semi-urban customers who make frequent grocery purchases and restaurant payments using their cards.

Here’s what consumers can expect:

• More savings on essential expenses like monthly groceries.
• Real value from dining out or ordering food online.
• Simpler rewards, since cashback is credited automatically rather than through complex redemption steps.
• No major increase in fees, keeping the card affordable.

For instance, an HDFC Millennia cardholder spending ₹5,000 a month on dining and groceries can now earn ₹400–₹500 in monthly cashback—amounting to ₹5,000+ savings annually.

Expert View: Focus on Practical Value

Financial analysts believe this update reflects a larger industry trend: banks are moving from travel-centric rewards to everyday spending benefits.

“Consumers today want instant and relevant rewards. Cashback on groceries and dining creates daily engagement and real-world value. HDFC Bank is clearly listening to customer behavior,” said a senior credit card industry analyst.

This focus on practical spending gives HDFC Bank an edge, especially as younger consumers and first-time cardholders prioritize convenience over aspirational perks.

How to Maximize Cashback with HDFC Bank Cards

To get the most out of the upgraded benefits, here are a few useful tips:

1. Pay via SmartBuy or PayZapp: Many enhanced cashback offers are available only when transactions are made through these platforms.
2. Track partner offers: Dining and grocery partners change quarterly—keep an eye on the latest list in HDFC’s rewards section.
3. Use cards strategically: Use premium cards like Regalia Gold for fine dining, while Millennia is perfect for daily food delivery and groceries.
4. Hit monthly milestones: Cards like Regalia Gold and MoneyBack+ offer milestone bonuses for spending above certain thresholds.
5. Redeem reward points wisely: Convert your points into statement credit, travel bookings, or gift vouchers for maximum value.

A Look at the Competition

Compared to its peers, HDFC Bank now offers the highest cashback rate on dining and grocery spends among mainstream credit cards in India.

Broader Strategy: Building Loyalty Through Everyday Rewards

HDFC Bank’s move isn’t just about cashback—it’s about deepening customer relationships through consistent engagement. By rewarding transactions in essential categories, the bank ensures its cards become a primary payment mode in users’ wallets.

The bank’s internal data reportedly shows a sharp rise in transaction volumes from food and grocery merchants post-update. This validates the strategy of rewarding high-frequency categories rather than niche luxury ones.

Moreover, these updates fit within HDFC’s broader goal of expanding its credit card base to 20 million users by 2026, by attracting digitally active and younger customers.

Consumer Reactions

Early feedback from users has been positive. Many cardholders on digital forums and social media praise the increased cashback rates, noting that it makes the cards far more valuable for everyday use.

One customer commented,

“The new cashback structure actually helps me save on groceries every week. Earlier I used my card mainly for online shopping, but now it makes sense for essentials too.”

Such feedback indicates that customers are embracing the shift towards more tangible, lifestyle-oriented rewards.

Final Thoughts

With the Dining and Grocery Cashback Upgrade, HDFC Bank has redefined what everyday spending rewards look like. Rather than focusing solely on premium travel benefits, the bank is rewarding the categories that matter most to Indian consumers in 2025—food, essentials, and convenience.

For users who dine out, order food, or shop for groceries regularly, this is a meaningful and practical upgrade that delivers real savings month after month.

In a market where many cards still restrict high rewards to online shopping or luxury travel, HDFC Bank’s new cashback approach stands out as inclusive, useful, and customer-centric.

If you’re looking for a card that delivers consistent value on everyday purchases, the upgraded HDFC Millennia, MoneyBack+, or Regalia Gold Credit Cards are now among the most rewarding choices available in India.