Same card, same spending—so why have the benefits been cut in half? Understand the full picture.

Credit Card Devaluation: If the cashback and rewards you receive from your credit card have decreased, learn what 'Credit Card Devaluation' is and how it might affect you.

Credit Card Devaluation: Credit card usage has become commonplace in almost every middle-class family today. But have you noticed that the same card which offered you fantastic rewards and cashback two years ago is now providing fewer benefits? In financial terms, this is known as 'Credit Card Devaluation.' Simply put, banks quietly reduce the value of your card while your spending remains the same.

What is Credit Card Devaluation?

Credit Card Devaluation means that the benefits offered on a card are gradually reduced, even though your spending habits remain unchanged.

Banks may implement various changes, such as:

Lowering cashback limits
Restricting airport lounge access
Reducing the value of reward points
Adding new fees or terms and conditions
In short: the same card, but with fewer benefits than before.

Which cards have seen changes recently?

The terms and conditions for several popular credit cards have been altered in recent months.

Card What Was Available Earlier What Has Changed Now

SBI Cashback Card	Higher cashback benefits were available	Cashback is now capped at ₹4,000 per statement cycle
HDFC Infinia	Certain premium benefits were easily accessible	Many benefits now require a minimum spending threshold or a banking relationship

Additionally, rewards or cashback have been capped for certain spending categories, such as bill payments and government transactions.

Why are banks doing this?

Credit card companies and banks take such measures to control costs and boost profits.

According to experts: