Yes Bank Credit Cards Face Second Devaluation Starting July 1, 2020

Yes Bank’s credit cards experienced a significant devaluation in April 2019 when earn rates on regular spends were reduced across their product range, including the premium Yes First Exclusive card. The bank has now announced further adjustments that affect reward point value and lounge access. These changes take effect from 1st July 2020.

YesFirst Exclusive Revised Benefits

Change Type	Existing	Revised
Regular Rewards	6 Reward Points for every INR 100 spent anywhere	12 Reward Points for every INR 200 spent anywhere
Accelerated Rewards	12 Reward Points for every INR 100 spent on select categories	24 Reward Points for every INR 200 spent on select categories
Lounge Access – Priority Pass	Not chargeable for domestic, unlimited for international	Chargeable for domestic, no change for international
Lounge Access – Credit Card	Unlimited for Primary & Add-on	No change
Point Value	25ps for all redemptions	25ps for flights & hotels, 15ps for everything else (like gift cards & vouchers)

What are the changes?

Earning Rewards

The headline earn rate in terms of points remains numerically similar, but points will now accrue per INR 200 spent instead of per INR 100. This change reduces the number of points awarded on smaller transactions and appears designed to limit payouts on routine, low-value spends.

Since many transactions fall in the INR 2,000–4,000 range, this adjustment can meaningfully reduce the bank’s liability on their rewards balance.

Redeeming Rewards

Yes Rewardz’s communication clarified that the redemption value for points has been altered. While flight and hotel redemptions remain at 25 paise per point, catalogue redemptions including gift cards and vouchers will drop to 15 paise per point. That represents a 40% reduction in value for non-travel redemptions.

Converting this to an effective earn rate, the Yes First Exclusive now delivers roughly a 0.9% reward rate on regular spends when points are redeemed outside travel categories, which is lower than some newer entry-level cards.

Lounge Access

A notable benefit being removed is complimentary Priority Pass access for domestic lounges. The international Priority Pass benefit remains unchanged, but domestic access will become chargeable. The card’s own credit-card lounge access for primary and add-on holders remains unlimited.

What to do now?

You have about 30 days before the new rates take effect to redeem points at the current 25 paise value for non-travel redemptions. If you regularly use points for vouchers or catalogue items, consider redeeming now to avoid the reduced value.

If your travel needs are already covered by other cards and you use Yes Bank points mainly for gift vouchers, redeeming now will preserve more value. The redemption system is functioning at the existing rate for the moment, so act promptly if you plan to convert points into vouchers or catalogue items.

Should I Close my Yesbank Credit Card?

If you hold the Yes First Exclusive or Yes First Preferred as Lifetime Free (LTF) cards with a strong credit line, keeping them for the unlimited credit-card lounge access (primary and add-on) may still be worthwhile. If you do not benefit from that lounge access or the remaining perks, consider cancelling the card.

For customers who used points mainly for flights and hotels, the impact is limited because travel redemptions are unchanged. However, with travel subdued for the near term, many cardholders may find vouchers a more practical redemption and then exit the product.

It’s likely the lounge benefits could be reduced further over time, so weigh how much you actually use those perks before deciding.

Bottom line

These updates reflect cost-cutting measures as the bank manages a challenging period. While customers have a one-month window to redeem points at the existing catalogue value, the lack of explicit mention about the point devaluation in the initial communication is disappointing.

Given the revised reward economics and tightened benefits, Yes Bank credit cards are less competitive now across most user types. Cardholders should review their card lineup, redeem points if needed, and decide whether to retain or cancel based on their specific benefits and usage.

What do you think of this latest round of devaluation to Yes Bank’s credit cards? Will you hold or cancel? Share your thoughts below.