The Indian credit card users’ situation is changing markedly today, like ICICI Bank and SBI are about to complete the implementation of the altered credit card setups. Gradually, all the changes will be effective on January 15, 2026. Among the introduced alterations is the switch to performance-based from automatic rewards. The patrons are now obliged to reach minimum spending limits to access premium incentives like lounge entry and entertainment vouchers.
Strategic Implementation of New Transaction Fees
The new credit card scheme has witnessed the addition of fees on certain transaction types that attract high traffic. The banks have enforced a 2% charge on all online gaming transactions done through platforms such as Dream11 and MPL. Moreover, a 1% fee will apply to transactions of over 5,000 INR when users top up their digital wallets that include Amazon Pay, Paytm, or MobiKwik. The banks say that these measures will not only help in the processing of digital payments but also in managing costs that arise due to the use of third-party payment gateways.
Revised Reward Points Capping and Eligibility Criteria
A tightening of the points earning structure has occurred on both the premium and entry-level cards. As an example, in the case of lenders, leading ones are already withdrawing from point calculation those categories where customers make high-value spending, such as rent, tax payments, fuel, and government services. Notably, the much-in-demand BookMyShow “Buy One Get One” offer now has a spending prerequisite of 25,000 INR in the prior calendar quarter. This guarantees that the high-end lifestyle benefits go to the active, high-volume customers only.
Enhanced Security through Mandatory Tokenization and RBI Regulations
Alongside changes specific to banks, the Reserve Bank of India (RBI) is implementing tougher measures for the 2026 credit card cycle. A significant aspect of this program is the mandatory tokenization of card data for all online and point-of-sale transactions. The 16-digit card numbers that contain sensitive information will be replaced with unique digital tokens, making it almost impossible for data breaches to occur. In addition, card issuers have to now get “yes” from the customer along with a One-Time Password (OTP) before a new card is issued, as well as when the credit limit of the customer is increased or reduced.