Premium credit card benefits are shrinking fast. Major banks including HDFC Bank, American Express, SBI Card, and ICICI Bank have slashed rewards and tightened lounge access over recent months. HDFC's Infinia card now requires annual spending of eighteen lakh rupees or relationship value of fifty lakh rupees to retain benefits. Amex devalued milestone rewards on its Platinum Travel card while ICICI removed accelerated rewards on popular merchants for its Emeralde Private card. Even entry-level cards face reduced cashback rates and monthly reward caps. Banks cite pressure on product economics as the reason. Credit card profitability depends on annual fees, interest income from revolving balances, and interchange revenue. When reward redemption rates exceed projections or customer spending patterns shift, issuers cut benefits to restore margins.
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