Charging Ahead: Smart 3-Point Action Plan for Your Reward Points Under RBI’s October 1 Credit Card Rules
Starting October 1, the Reserve Bank of India’s new credit card regulations will reshape how issuers communicate, activate, and manage cards. News outlets will recap the rule changes—but few will guide cardholders on tactical steps. This article bridges that gap with a clear, strategic action plan to help you protect and leverage your reward points effectively under the new framework.
What Are the New RBI Rules from October 1?
The key policies taking effect on October 1 include:
1. Tokenisation of card data—credit and debit card details used for in-app, online, and POS transactions must be replaced by unique tokens to enhance security and reduce fraud.
2. Mandatory OTP-based consent for card activation if the card remains unused for 30 days. Without customer consent, issuers must cancel the card at no cost.
3. Strict limits on credit limit breaches, prohibiting issuers from increasing limits without explicit user consent.
4. Transparent billing and fees, including minimum 14-day repayment windows and prohibition on capitalising unpaid charges into interest.
These consumer-protective norms will impact how you interact with your credit card—and how you should manage your reward points strategy.
3-Point Action Plan for Your Reward Points
1. Audit Your Points: Know What You Have and Where
Start by taking inventory of your reward points across major cards (e.g., HDFC, SBI, ICICI). Here’s how:
HDFC Bank: Log into NetBanking or mobile app → Rewards section → check points for each card variant.
SBI Card: Visit SBI Card website or app → click Rewards → view points summary.
ICICI Bank: Use iMobile or NetBanking → navigate to “Rewards & Offers” → see current balance.
Also audit points on travel or co-branded cards (e.g., Air India, Vistara, etc.), as their value may be shifting. A clear audit ensures you know what you may lose—especially under tightened policies.
2. Analyze the Devaluation: What’s Losing Value—and How Much?
Regulatory changes alone don’t alter points—but issuer-led benefit cuts do. Recent examples:
SBI SimplyClick Card: Rewards on Swiggy have been slashed from 10× to 5×—a 50% devaluation.
SBI Air India Card: Certain travel-linked perks are being trimmed, though specifics vary.
IDFC First Bank: Ends Milestone Rewards from March 31, 2025—your spends will earn fewer bonus points.
Action Steps
Prioritize redeeming points slated for devaluation (e.g., limited-time offers, capped categories).
Shift spending to categories or cards that still maintain better value ratios (e.g., cashback or flat point rates).
Avoid holding large balances in cards whose rewards structure is being phased out.
3. Redeem and Reallocate: Use, Transfer, or Shift Smartly
With the new norms creating clarity, here’s how to act:
Redeem now: Convert points from cards facing cuts—for instance, if Swiggy multiplies are halved, use those points promptly on vouchers or bookings.
Transfer if viable: If points can be transferred to partners (e.g., airlines, gift cards), do so before value declines.
Reallocate spend: Redirect future transactions to cards offering better rewards stability—such as those giving consistent cashback or unaffected multipliers.
By combining swift redemptions with smart reallocation, you minimise devaluation losses and align spending with better reward continuity.
Bonus: Use the New Rules to Your Advantage
OTP-based consent now gives you control: decline a new card or cancel unused ones cheaply—especially if the issuer has poor rewards.
Transparent billing helps you avoid surprise interest: ensure timely repayment, and protect both your points and credit score.
Tokenisation improves security, giving you confidence to spend freely and earn without fearing data theft.
Final Thoughts
The RBI’s October-1 credit card rules elevate consumer transparency, consent, and protection. But your bigger concern is optimizing reward points—because issuer-led devaluations are stealthier and more impactful.
This 3-Point Action Plan lets you
1. Audit your balances across HDFC, SBI, ICICI, and travel-linked cards.
2. Analyze which rewards are being cut—like Swiggy 10× drops or milestone programmes ending.
3. Redeem, Transfer, Reallocate smartly—use expiring value, move points to stable channels, and shift future spend strategically.
You can visit the official website of Reserve bank of India: https://m.rbi.org.in//home.aspx
You may also like to read: https://khabarkhabri.com/credit-cards-on-upi-3024/