When Yes Bank first launched its credit cards, they were among the most rewarding options on the market. Early cardholders enjoyed exceptionally generous welcome offers and spend-based incentives — at one point promotions included as many as 100,000 bonus reward points for qualifying spends. Those benefits, combined with premium presentation for cards like the Yes First Exclusive, made the products stand out.
Over the past two years the program has seen significant changes. Attractive offers gradually disappeared and the card suite experienced a series of devaluations to rewards and privileges. These changes reflect an industry-wide trend where very generous features are often scaled back over time, and Yes Bank’s cards have been affected as well.
June 2021 Devaluation
A notable set of changes took effect on 15 June 2021, reducing reward rates on some categories and tightening lounge access. Key points include:
- Domestic lounge access: For the Yes First Exclusive card, access is now limited to three visits per card per quarter for both primary and add-on cards. For the Yes First Preferred card, complimentary domestic lounge access is limited to the primary cardholder only.
- Reward rates: Reward earn rates on select categories were lowered — for example, Effective rates were reduced to 0.75% on Yes First Exclusive and 0.5% on Yes First Preferred for the specified categories.
It is reasonable to expect additional restrictions in the future. For instance, international lounge access could be curtailed as cross-border travel resumes. Unlimited complimentary lounge access tied to low-fee cards is difficult to sustain indefinitely.
These adjustments follow a common pattern: lifetime-free or very low-fee cards often see benefits trimmed over time as issuers manage costs and profitability. If you follow the broader credit card landscape, such devaluations are not surprising.
Lucrative EMI and Loan Offers
Despite reductions to rewards and lounge privileges, Yes Bank cards continue to offer two features that remain attractive for many users:
- Loan on credit card at 9.9% p.a.
- EMI conversions at 9.9% p.a.
These rates are comparatively low in the Indian market and can make Yes Bank cards useful even when rewards have been scaled back. Affordable credit-card loans and low-cost EMI options are relatively rare among issuers, so these features are a meaningful differentiator for customers who value flexibility and lower financing costs.
A caveat: these attractive financing options are not the default experience for every cardholder. Many Yes Bank cards are issued with relatively modest credit limits, which can limit the practical usefulness of a loan-on-card or high-value EMI conversions. Still, for those who receive sufficient limits or have specific financing needs, the low-rate offers can justify keeping the card.
Final Thoughts
I do not recommend Yes Bank credit cards as primary reward cards for users seeking the highest return on everyday spending. Recent devaluations mean that their rewards and lounge benefits no longer compete with top-tier offerings from other issuers.
However, if you value access to low-interest loans on the card or affordable EMI conversions, holding a Yes Bank credit card can be worthwhile. If the card is provided as a lifetime-free option, accepting it makes sense. If you must choose a new primary card, plenty of alternatives on the market offer stronger reward structures and benefits tailored to different spending habits.
What are your thoughts on Yes Bank credit cards in 2021? Share your views in the comments below.