HDFC Bank 2026 Card Update: Fees, Rewards & Lounge Access Overhauled

Indian banking giant HDFC Bank has made changes to its credit and debit card policies effective January 1, 2026, that will impact all customers. The bank is now pursuing a “value-based spending” strategy instead of “mass volume.” If you’re confident about your reward points or airport lounge access, you may need to adjust your strategy.

Airport Lounge Access

The most significant change pertains to airport lounge access. Effective January 10, 2026, the bank has completely discontinued the physical swipe model for debit cards. Now, to qualify for lounge access, you’ll need to meet a minimum quarterly spending threshold of ₹10,000 (up from ₹5,000 previously).

Upon reaching this target, the bank will send you a digital link to generate a “lounge access voucher” (a QR code or 12-18 digit code). You’ll need to show this digital voucher upon entering the lounge. The only relief is for Infiniti debit card holders, who will continue to enjoy lounge access without any spending limit.

Reward Points and Infinia

New rules have come into effect for premium cardholders, especially HDFC Infinia Metal Edition users, from February 1, 2026. The bank has limited the frequency of reward point redemptions to a maximum of five times per month.

Furthermore, the reward rates available through the SmartBuy platform have also been revised, resulting in a slight decrease in effective returns. Furthermore, for Apple products and Tanishq vouchers, you can now only pay 70% of your bill with reward points; the remaining amount must be paid by card.

Utility and Rent Payments

The bank has also tightened its transaction fees. A 1% transaction fee is now being levied on utility bill payments (such as electricity and water bills) and online gaming transactions for spending above the monthly limit. This 1% fee and monthly capping also apply to rent payments. This change is a concern for those who use credit cards to pay rent or large utility bills, as their costs have now increased.

PhonePe HDFC Ultimo

Amidst these cuts, the bank has launched its new co-branded card, “HDFC Ultimo,” in collaboration with PhonePe. This card is designed for customers who want direct benefits on everyday expenses such as recharges, bill payments, and Scan n Pay. This card offers 10% cashback on utility bills and 1% cashback on payments made by scanning QR codes at local grocery stores, making it an attractive option for the middle class.