YES Bank and ICICI Bank have announced updates to their credit card benefits and rewards programmes, impacting lounge access, reward point redemption, and transaction-related charges.
ICICI Bank’s changes will come into effect from November 15, 2024, while YES Bank will begin implementing reward redemption limits from December 1, followed by stricter lounge access spending requirements from April 1, 2025. These updates align with similar benefit revisions recently announced by other major banks, including HDFC Bank and Axis Bank.
YES Bank Introduces New Reward Redemption Limits
Starting December 1, YES Bank will limit the number of YES Rewardz points that can be redeemed for flight and hotel bookings. Cardholders will be allowed to redeem points covering up to 70% of the total invoice value or up to a fixed monthly cap, whichever is lower.
Monthly reward redemption caps by card type
- YES MARQUEE Cards: Up to 300,000 points per month
- YES RESERV Cards: Up to 200,000 points per month
- Other YES Bank credit cards: Up to 100,000 points per month
These limits apply specifically to flight and hotel bookings made using YES Rewardz points.
This restriction is in addition to the existing rule that allows only 50% of available reward points to be redeemed for gift vouchers and statement credits. According to YES Bank, these changes are aimed at streamlining reward usage and ensuring more value-focused benefits for cardholders.
YES Bank Increases Lounge Access Spending Requirements
From April 1, 2025, YES Bank will revise the quarterly spending thresholds required to qualify for complimentary domestic airport lounge access. The number of lounge visits remains unchanged, but cardholders must meet the new spending criteria to remain eligible.
Revised quarterly spend requirements for lounge access
- YES MARQUEE Cards: ₹1,00,000 spend for 6 lounge visits
- YES RESERV Cards: ₹1,00,000 spend for 3 lounge visits
- YES First Preferred and YES Business Cards: ₹75,000 spend for 2 lounge visits
- YES ELITE+, SELECT, BYOC, Wellness Plus, and Prosperity Business Cards: ₹50,000 spend for 1 or 2 lounge visits, depending on the card variant
Spending must be completed within specified quarters. For example, spending between December 21 and March 20 will determine eligibility for lounge access during the April to June period. Failure to meet the required spend will result in loss of complimentary lounge access for the subsequent quarter.
ICICI Bank Revamps Credit Card Benefits and Fee Structure
Effective November 15, 2024, ICICI Bank will introduce several changes across its credit card portfolio, affecting lounge access eligibility, rewards earning, and transaction charges.
Higher spending requirement for lounge access
To access domestic airport lounges in the following quarter, ICICI Bank cardholders will now need to spend ₹75,000 in the preceding quarter. Earlier, the minimum spend required was ₹35,000.
Spa access benefit discontinued
Spa access benefits available on select ICICI Bank credit cards through DreamFolks will be discontinued from November 15.
Reward point caps on utility and insurance payments
Monthly reward earnings on utility payments will be capped between ₹40,000 and ₹80,000, depending on the card. Similar caps will apply to insurance premium payments.
No reward points on government transactions
The Emeralde Mastercard Metal Credit Card will no longer earn reward points on government-related transactions, including tax payments and statutory fees.
Limits on grocery and department store rewards
Reward points earned on grocery and department store purchases will be capped at ₹20,000 or ₹40,000 per month, based on the card variant.
Fuel surcharge waiver capped
Fuel surcharge waivers will apply only for fuel purchases up to ₹50,000 per month, while Emeralde Mastercard holders will receive waivers up to ₹1,00,000 per month.
New fees on education payments via third-party platforms
A 1% fee will be charged on education payments made through third-party platforms. Direct payments made to schools or universities will remain fee-free.
Utility and fuel transaction fees introduced
Utility payments exceeding ₹50,000 will attract a 1% transaction fee. Fuel transactions above ₹10,000 will also incur a 1% fee.
Annual fee for add-on cards
ICICI Bank will introduce an annual ₹199 fee for add-on credit cards, charged on the primary card’s anniversary.
Reduced annual fee waiver threshold
The annual fee waiver threshold for Emeralde cards will be reduced to ₹10 lakh, down from ₹15 lakh.
Revised late payment charges
Late payment fees will now range from ₹100 to ₹1,300, depending on the total outstanding balance.
What These Changes Mean for Credit Card Users in 2026
Credit cards in 2026 will no longer be about unlimited benefits. Lounge access, reward redemptions, and fee waivers will depend heavily on how much you spend.
Users who regularly spend high amounts may still find premium cards valuable. However, low and moderate spenders should reconsider whether the annual fees and reduced benefits justify keeping these cards.
You may want to explore credit cards with simpler reward structures, lower annual fees, or cards focused on cashback instead of points.
Final Takeaway
YES Bank and ICICI Bank credit cards are moving towards spend-based benefits and capped rewards. While this makes rewards more predictable for banks, users must stay alert to avoid losing value.
Before continuing with your existing card or applying for a new one, always review the updated reward rules and fee structure carefully.