YES Bank has announced a reduction in reward rates across its credit card lineup, including premium and super-premium variants that were previously among the best in the market. These changes take effect from 15 April 2019. Below is a concise summary of the revised earning structures for the most popular Yes First cards and what cardholders should expect.
Yes First Preferred
- Previous earn rate: 2%
- Revised earn rate (from 15 April 2019): 2% on Travel, Domestic Airlines and Dining; 1% on all other spends
Yes First Exclusive
- Previous earn rate: 2.5%
- Revised earn rate (from 15 April 2019): 3% on Travel, Domestic Airlines and Dining; 1.5% on all other spends
In addition to reward-rate adjustments, Yes Bank has made changes to the interest applied on revolving credit. For most customers, this will be less relevant if balances are routinely converted to EMI plans at competitive rates, but cardholders who carry a revolving balance should review the updated terms carefully.
The biggest impact is on regular, everyday spending categories. Many cardholders will miss higher rewards on routine online purchases and apparel shopping, which are no longer prioritized under the revised structure. The new rates also apply to international transactions, meaning rewards will no longer substantially offset markup fees for foreign spending.
Bottomline
This is a disappointing development, especially since YES Bank had already scaled back aggressive promotional offers over the past year. Some customers who were upgraded from Yes First Preferred to Yes First Exclusive in recent months may find the value proposition diminished. It’s plausible these changes reflect the bank managing current challenges, though they could also be strategic adjustments to stabilize margins.
With the revised structure in place, Yes First cards will be less attractive for a majority of users. Restoring value would likely require renewed promotional activity—periodic 2x/3x reward campaigns would help recover lost benefits for cardholders. At present, select high-end products such as the Yes Private credit card appear unaffected by this round of changes, so selective upgrades from Exclusive to Yes Private for valuable customers could be one way for the bank to retain loyalty.
What do you think about the changes to YES Bank’s reward rates? Share your thoughts in the comments below.