Major HDFC Credit Card Devaluations Effective August 15, 2017

HDFC has been rolling out a series of devaluations over the past two years, and recent moves affecting its premium cards come at a surprising time as competitors become more rewarding. HDFC has implemented significant changes across many cards, including its Diners lineup. The updates are substantial enough that the bank sent SMS notifications to customers. Below is a clear summary of the key changes.

Changes to HDFC Regalia Credit Card:

According to HDFC’s site, effective 15 August 2017:

1. Each reward point is worth Re 0.50 when redeemed on the hdfcbankregalia website.
2. 2X reward points will no longer apply to dining (standalone restaurants), flight bookings on Vistara, or bookings on the hdfcbankregalia website.
3. Reward points will be redeemable only for airline ticket bookings and hotel bookings on the hdfcbankregalia site.
4. New effective reward rate: 1.3%.

Regalia’s effective reward rate has dropped from earlier levels (previously around 2%) to 1.3%. The removal of 2X points on dining removes a long-standing earning advantage. Points can no longer be used for mobile recharges, limiting redemptions mainly to flights and hotels — though Regalia’s hotel prices tend to be high, so flight redemptions will be most practical for many cardholders.

Changes to HDFC Regalia First Credit Card:

• New point valuation: 1 reward point = ₹0.30.
• New effective reward rate: 0.8%.

Changes to HDFC MoneyBack Credit Card:

• New point valuation: 1 reward point = ₹0.20.
• New effective reward rate: 0.2%.

If you hold the MoneyBack card, consider replacing it with a better option; its effective returns are now extremely low.

Changes to HDFC Diners Credit Cards:

Across all Diners cards — Rewardz, Premium and Black — the following changes apply:

• From 15 August 2017, the accelerated 2X reward points on hdfcbankdinersclub site purchases, dining, grocery, supermarket and air bookings will be withdrawn.
• There is now capping on the accelerated 10X program; regular reward points on other spends continue but details are less clear.

Diners Rewardz:

1. 1 reward point will convert to 0.30 AirMile/value from 15 August 2017.
2. Complimentary lounge access will be withdrawn; unlimited lounge access is no longer available.
3. New effective reward rate: 0.6%.

Given these changes, holding this card offers far less value than before.

Diners Premium:

1. 1 reward point will convert to 0.50 AirMile/value from 15 August 2017.
2. Complimentary golf lessons will be withdrawn from 15 August 2017.
3. Cardholders will receive six complimentary domestic/international lounge accesses per calendar year from 15 August 2017; unlimited access is discontinued.
4. New effective reward rate: 1.3%.

Premium now aligns closely with Regalia in reward value and benefits, reducing its appeal unless accelerated reward promotions remain available for some time.

Diners Black:

1. 1 reward point = ₹1 AirMile/value (no major change to reward valuation for now).
2. Six complimentary golf games per quarter will be offered from 15 August 2017.
3. Complimentary golf lessons will be withdrawn from 15 August 2017.

At present, Diners Black and Infinia have not seen reward-rate reductions. It appears HDFC is protecting its highest-tier products, likely because those cards generate significant revenue from high-net-worth relationships. However, further changes could come later.

The party is over!

These changes reflect a broader shift. Diners cards grew popular because of generous benefits like unlimited lounge access, and wider acceptance made them mainstream. With the marketing push reduced, several previously attractive features have been scaled back or removed.

Stop hoarding points:

Accelerated rewards (2x/5x/10x) are tempting, but avoid buying things you do not need merely to collect points. If you cannot redeem points within three to six months, avoid further accumulation. HDFC has repeatedly issued lucrative offers and then devalued rewards later, so holding large balances of points is risky.

This devaluation is a clear reminder that reward points are not a reliable long-term investment.

What to do now

Redeem points promptly: If your card is affected by devaluation, redeem points before the effective date. Points held after 15 August will be worth less. Redeem for flight tickets or other high-value redemptions on the Regalia site, or consider transferring to airline miles where available.

Consider a new card: After these changes, many HDFC premium cards are less competitive versus alternatives such as SBI Elite, SBI Prime, or other issuer offers. Evaluate competing cards and switch if another card better fits your spending and redemption habits.

Reward programs evolve, and changes can happen without much notice. Monitor your cards, redeem valuable points quickly, and choose cards that align with your needs rather than hoarding points indefinitely.

What’s your view on HDFC’s recent devaluations and how do you plan to respond?