Axis Bank has revised the features of a popular co-branded credit card, i.e., Flipkart Axis Bank Credit Card. The revised features come into effect from August 12. “As of date, Axis Bank has made changes to the product features of only the Flipkart Axis Bank credit card with effect from 12th August 2023,” said an Axis Bank spokesperson.
Here are the key changes in features of the Flipkart Axis Bank Credit Card that the bank has announced.
Change in the Cashback earned
Effective from August 12, spending towards flight and hotel payments on Flipkart and spends on Myntra shall be eligible for 1.5 percent unlimited cashback from 5 percent cashback. This means that earlier whatever your spends were, you used to get 5 percent of that amount back. Now your cashback will come down to 1.5 percent.
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Exclusion of payments made towards Government services from Cashback
Payments made towards government services, fuel spends, purchase of gift cards on Flipkart and Myntra, EMI transactions, wallet loading, purchases converted to EMI, utility bill payments, educational services, rental payments, etc. will not be eligible for cashback. This is a significant reduction of benefits as many millennials and young credit card holders typically pay their rents and utility bill payments using their credit cards.
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Increased spending limit for annual fee waiver
You will now need to spend a lot more if you wish to see your annual fee (Rs 500) waived. Earlier, you had to spend at least Rs 2 lakh a year to earn a fee waiver. Now, Axis Bank has increased this minimum threshold to Rs 3.5 lakh.
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Is Axis Bank reducing benefits on other cards?
Credit card circles were buzzing with rumours over the past week that Axis Bank might also reduce benefits- on Axis Magnus Credit Card; widely acknowledged to be one of the more popular credit cards in India. However, the bank only confirmed the reduction of benefits of the Flipkart Axis Bank credit card.
On July 12, Moneycontrol accessed documents on Axis Bank’s website that detailed the revised terms and conditions of five of its credit cards; Axis Bank Privilege card, Axis Bank Reserve card, Axis Bank Select card, Axis Bank My Zone credit card and Flipkart Axis Bank credit card. However, on the morning of July 13, these documents were no longer available on the bank’s website.
In response to Moneycontrol’s query about the revision of terms and conditions of the five cards, an Axis Bank spokesperson replied, "as of date", one card has changed its terms and condition. This will be effective August 12, 2023. As per rules laid down by the Reserve Bank of India (RBI), banks and card companies have to give a month’s time to cardholders to exit if they do not agree to the new terms and conditions.
This story has been amended after Axis Bank clarified that it has revised the terms and conditions of only one credit card.
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