Why Mid-Year Is a Critical Time for Your Points
Mid-year and the start of a new financial year are common periods for banks to reassess their loyalty programs. Facing rising costs and shifting economic conditions, issuers often adjust benefits to maintain profitability. In 2026, several major Indian
banks like SBI Card, ICICI Bank, and Axis Bank have already implemented significant changes, such as removing rewards on rent payments, capping points on utility bills, and making lounge access conditional on spending targets. This trend, known as devaluation, means the points you hold could fetch less value in the future, or the rules to earn them could become stricter. Being proactive during this window is key to safeguarding their value.
Step 1: Conduct a Points Audit
You can't protect what you don't track. The first step is to create a simple inventory of all your loyalty points. Log into each of your credit card accounts and note down the current points balance, their expiry dates, and the bank's loyalty program name (e.g., HDFC Reward Points, Axis EDGE). Most points have a validity period of two to three years. Many cardholders lose points simply because they forget about them or are unaware of their expiration. Regular monitoring, either through your bank's app or monthly statements, helps you stay informed and ready to act.
Step 2: Scrutinise Communications from Your Bank
Banks are required to inform you of any changes to terms and conditions, but these notifications can be easy to miss. They often arrive as a dense email, an SMS with a link, or a small note in your monthly statement. Pay close attention to any communication that mentions updates to the rewards catalog, redemption ratios, partner programs, or fee structures. These documents are your early warning system. For instance, an email might announce a change in the transfer ratio to an airline partner or introduce a new fee for redemption, both of which directly impact the net value of your points.
Step 3: Burn or Transfer Before Devaluation Hits
If you get wind of a negative change, the best strategy is often to use your points before it takes effect. You have several options. The most valuable redemptions are typically travel-related. Transferring points to airline or hotel partners like Singapore Airlines KrisFlyer, Marriott Bonvoy, or ITC Hotels can lock in high value, especially for business class flights. However, always confirm award seat availability before transferring, as these transfers are irreversible. If a travel redemption isn't feasible, consider redeeming for high-value vouchers for platforms like Amazon or Flipkart, which typically offer a better value than direct statement credit. Redeeming for cash is the simplest but usually offers the lowest return, making it a last resort.
Step 4: Understand Your Redemption Options and Their Value
Not all redemptions are created equal. A point's value can vary dramatically, from as low as ₹0.20 for statement credit to over ₹1 for flight bookings on premium cards. For example, 10,000 points might get you a ₹2,500 voucher or be part of a transfer that secures a flight worth ₹15,000. Always calculate the 'paisa per point' value before making a decision. To do this, divide the cash value of the reward by the number of points required. Also, be mindful of redemption fees and GST, which some banks charge, reducing the net benefit of your reward.
Step 5: Diversify Your Strategy for Long-Term Protection
Relying on a single credit card's loyalty program can be risky. If possible, diversify your spending across cards with different reward structures. For instance, use one card for its superior travel transfer partners and another for its high cashback rate on online shopping. This approach ensures that a devaluation in one program doesn't wipe out your entire rewards strategy. The trend is moving towards banks rewarding high spenders while reducing benefits on entry-level cards. Aligning your card usage with the categories that offer the highest rewards is a smart, defensive habit to cultivate.
