American Express India is implementing several updates to its popular Membership Rewards Credit Card. These changes take effect from 1 April 2021. Below is a clear summary of what’s changing and how it affects cardholders.
The Changes
- Monthly bonus: The minimum transaction amount to qualify for the monthly 1,000 MR points bonus is raised to INR 1,500 per transaction (previously INR 1,000).
- Extra points: Earn an additional 1,000 MR points by spending INR 20,000 in a month. Enrollment is required to receive this benefit.
- Welcome benefit: New paid cardmembers will receive 4,000 MR points after spending INR 15,000 within the first 90 days (previously 2,000 points for INR 15,000 in 30 days).
Raising the monthly bonus threshold aligns the card more closely with other Amex products, such as the Amex Gold Charge, which has a similar effective monthly spend requirement. The additional 1,000 MR points for INR 20,000 monthly spend is a positive for higher spenders who can enroll for the benefit. The revised welcome bonus extends the qualification window to 90 days for new paid cards, which is generally more convenient.
Analysis
The following analysis illustrates potential returns under the new structure:
Under the revised rules, spending around INR 72,000 per year yields a solid return on spending but does not trigger a fee waiver. That level of spend generates roughly 13,000 MR points, which typically fall short of common redemption thresholds such as 18,000 or 24,000 points.
Pooling MR points from other cards is an option, but it may not be the most efficient use of rewards for many members.
A clearer path to value appears at higher annual spending. If you spend approximately INR 240,000 per year, you can expect a return equivalent to a minimum of 4.6% as an Amazon voucher, which is a popular redemption route for members. Additionally, spending over INR 150,000 annually qualifies you for a full annual fee waiver.
For those who prefer hotel redemptions, the card can deliver even better value. Cardmembers redeeming through Taj or Marriott programs can realize around 7% value as a Taj voucher or potentially higher with Marriott transfers. Note that Taj vouchers issued by Amex India can only be redeemed against non-discounted room rates.
Is This Good or Bad?
Overall, the changes favor moderate-to-high spenders. The enhanced benefits for monthly and annual spending tiers make the card more attractive if your annual spend is in the region of INR 200,000 or higher. Conversely, the card becomes less appealing for very low spenders who previously relied on the lower monthly threshold to earn bonus points easily.
If your goal is to maximize points on smaller monthly spends, alternative cards such as the Bank of Baroda Select credit card may still suit that purpose, though customer support and other features may differ.
What are your thoughts on these changes? Feel free to share your views in the comments.