HDFC Bank has introduced a new co-branded fuel credit card in partnership with Indian Oil Corporation Ltd and Visa. The card offers attractive returns on fuel and several other everyday spending categories. Below is a concise, clear review covering fees, rewards, benefits and suitability.
Joining Fees
- Joining/Annual Fee: Rs. 500 + GST. Annual fee is waived on achieving Rs. 50,000 spend in a year.
- Welcome Offer: Earn up to 250 Fuel Points per month for the first six months (the regular earn rate is up to 150 Fuel Points per month).
Rewards
- IOCL Fuel Spends: 5% (up to 150 Fuel Points per month)
- Grocery Spends: 5% (up to 150 Fuel Points per month)
- Bill Payments: 5% (up to 150 Fuel Points per month)
A 5% return across multiple categories is competitive, but the monthly caps per category are relatively low, which limits the overall benefit for higher spenders.
Features & Benefits
- Fuel Surcharge Waiver: 1% waiver up to Rs. 250 per billing cycle on transactions of at least Rs. 400.
- XTRAREWARDS: Fuel Points convert to IndianOil XTRAREWARDS Points (XRP) for redemption. Conversion and redemption rates: 1 Fuel Point = 3 XRP; 1 XRP = Rs. 0.32. Redeem XRP for fuel at participating IndianOil pumps nationwide.
- Fuel Points Validity: Fuel Points remain valid for two years from the date they are earned.
Redemption and Practicality
Redemption relies on the XTRAREWARDS system, which involves converting Fuel Points to XRP and then using XRP at participating pumps. While this provides a clear route to free fuel, the conversion steps add complexity compared with straightforward cashback or statement credit models. Also, effectiveness depends on nearby IndianOil outlets supporting the XRP redemption process.
Bottomline
- CardExpert Rating: 3.5/5
This card suits beginners and light-to-moderate spenders who keep monthly fuel, grocery, and bill payments under the monthly caps (roughly up to Rs. 3,000 per category). The 5% returns are appealing at those levels, but the low monthly limits and the multi-step redemption process reduce convenience and value for heavier users. If your monthly spending in these categories is limited and your local IndianOil station supports XRP redemption, the card can deliver worthwhile value.
For users who exceed these caps or want simpler redemption mechanics, consider comparing similar co-branded fuel cards from other issuers that offer higher caps or more direct cashback options. Nevertheless, as an entry-level co-branded offering, HDFC Bank’s Indian Oil card is a reasonable choice for consumers who can work within its restrictions.
What’s your take on the new HDFC Bank Indian Oil Credit Card?