Why Are Banks Cutting Credit Card Perks?
Summary
This episode explores why Indian banks are devaluing credit card rewards, citing shifting economics and savvy consumers who pay bills in full. Host Kudrat Wadhwa interviews financial expert Raj Khosla and user Karthik to explain how UPI usage and reduced interest income force banks to recalibrate perks. The discussion offers practical advice for cardholders to adapt by reviewing their portfolios and aligning cards with actual spending habits rather than chasing diminishing returns.
Topics discussed
Karthik's experience with credit card devaluations
How Karthik learned to optimize points for travel
The rise of points optimization and recent rule changes
Why banks are cutting rewards: profitability pressures
Impact of UPI and declining interest revenue on banks
Legality of devaluations and industry-wide trends
Consumer reactions and the shift to high-spenders
Strategies for adapting to the new credit card landscape
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