IDFC First Bank has announced significant changes to its credit card rewards program, impacting both premium and lifetime-free cards. The bank has reduced the rewards earning rates and capped the benefits on several of its popular credit cards. This move is likely to disappoint many of its customers who have been using these cards for their rewards and benefits.
The changes affect some of the bank’s most popular credit cards, including the IDFC First Classic, IDFC First Select, and IDFC First Wealth cards. The rewards earning rates on these cards have been reduced, with some cards now offering as little as 0.5% to 1% rewards on everyday spends. Additionally, the bank has introduced caps on the maximum rewards that can be earned per month, which will limit the benefits that customers can accrue.
The IDFC First Classic card, which was previously a popular choice for its 1.5% rewards earning rate, will now offer only 0.5% rewards on all spends. The IDFC First Select card, which offered 2% rewards on online transactions, will now offer only 1% rewards. The IDFC First Wealth card, which offered 3% rewards on international transactions, will now offer only 2% rewards.
The bank has also reduced the rewards earning rates on its lifetime-free credit cards, which were previously popular for their zero annual fees and attractive rewards. The IDFC First Lifetime Free card, which offered 1% rewards on all spends, will now offer only 0.5% rewards.
The changes to the rewards program are likely to affect the bank’s customer base, particularly those who have been using these cards for their rewards and benefits. The reduced rewards earning rates and caps on benefits may lead to a decrease in customer loyalty and retention. The bank may face competition from other credit card issuers that offer more attractive rewards programs.
It’s worth noting that the bank has not provided any official reason for the changes to its rewards program. However, it’s likely that the move is aimed at reducing costs and increasing profitability. The bank may be looking to optimize its rewards program to better align with its business goals and target customer segments.
Overall, the changes to IDFC First Bank’s credit card rewards program are significant and may have a negative impact on its customer base. Customers who have been using these cards for their rewards and benefits may need to reevaluate their credit card options and consider alternative cards that offer more attractive rewards programs.