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How Credit Card Rewards Work in India: Points, Cashback and Miles

By PointsExplainedLast reviewed

Find your card's rewards terms

Look on your issuer's website for the rewards terms and the Most Important Terms and Conditions (MITC) for your exact card. RBI requires issuers to publish details of reward benefits on their website and give cardholders a copy.

List every way to redeem

Note each redemption option (vouchers, products, statement credit, transfers to partners) with the points needed and what you would receive in rupees or partner currency.

Work out value per point

Divide the rupee value of each redemption by the points it uses. Compare the best option you would actually use with the cashback a simpler card would pay.

Check exclusions, expiry and fees

Before a large purchase, confirm the transaction type earns points, check when your points expire, and check for any redemption fee.

Redeem before you close the card

Closing a card can limit or end your access to points, so redeem or transfer them first, following your issuer's rules.

Where this comes from

Sources

The documents this guide relies on. If one has changed since we read it, the document is right and this guide is out of date.

  1. Reserve Bank of India (Commercial Banks – Credit Cards and Debit Cards: Issuance and Conduct) Directions, 2025 (RBI/DOR/2025-26/155, 28 November 2025)

    Para 72: benefits such as discounts, cashback, reward points and loyalty points must be offered transparently including their source, detailed on the issuer's website with a copy to the cardholder; para 87: co-branding partner must not access account details in breach of secrecy obligations; para 23(7): changes in charges only prospectively with at least one month's notice and closure without extra charge if disadvantaged, subject to dues.

    rbi.org.in · Accessed
  2. SBI Card FAQs: Reward points redemption

    SBI Card redemption options: gift vouchers and physical products via website/app, and cash/statement credit against the outstanding; statement-credit redemption rules changed w.e.f. 1 April 2026.

    sbicard.com · Accessed
  3. SBI Card FAQs: Rewards information

    SBI Card: Points + Pay option; redemption fee; points cannot be combined or transferred between SBI Card accounts; points expire after a set validity period and expiring points are shown on the statement; redemption window after voluntary closure and forfeiture on other cancellation; statement-credit redemption changes from 1 April 2026.

    sbicard.com · Accessed
  4. SBI Card FAQs: Earning reward points

    SBI Card exclusions from earning points (balance transfers, Flexipay EMI, cash advances, petrol pumps, e-wallet loads under MCCs 6540/6541, financial charges such as late payment fees; rent and government-related payments on certain cards, identified by MCC); points on transactions converted to Flexipay EMI are forfeited; MCC parameters are defined by network partners (Visa, Mastercard and RuPay).

    sbicard.com · Accessed
  5. SBI Card: Most Important Terms and Conditions

    SBI Card MITC: reward points expiry period on its cards.

    sbicard.com · Accessed
  6. Axis Bank: Points/Miles Transfer Program

    Axis Bank EDGE REWARD Points and EDGE Miles can be transferred to airline and hotel partners; transfer ratios differ by card variant and partner; process via Travel Edge, link membership ID, OTP confirmation; minimum transfer amounts.

    axis.bank.in · Accessed
  7. Axis Bank: Revision of Miles Transfer Program Terms and Conditions

    Axis Bank miles transfer terms, revised with effect from 20 April 2024: the Group A/Group B classification and the partners list are subject to change at the bank's discretion without notice.

    axis.bank.in · Accessed
  8. Axis Bank: Credit Card on UPI (RuPay credit card on UPI FAQs)

    Axis Bank says customers continue earning EDGE Reward points on UPI spends with its RuPay credit cards as per the existing product offering.

    axis.bank.in · Accessed
Questions

About this guide

Is a reward point worth the same on every card?

No. Each issuer sets its own redemption options, and some also set different transfer ratios by card. Axis Bank's transfer table, for example, gives different ratios depending on the card you hold and the partner you choose.

What happens to my points if I close my card?

It depends on the issuer's terms. SBI Card, for example, allows redemption for a limited period after you close a card yourself, and forfeits points on accounts cancelled for other reasons. Redeem first if you can.

Do UPI payments with a RuPay credit card earn rewards?

That depends on your issuer and card. Axis Bank says its RuPay credit cards continue to earn EDGE Reward points on UPI spends as per the existing product terms.
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