The Reserve Bank of India issued a clarification in June 2025 regarding mid-cycle changes to credit card benefits — specifically targeting the wave of lounge access devaluations.
The Reserve Bank of India issued a Master Direction clarification in June 2025 that has significant implications for credit card benefit changes.
Key directive: Banks must provide a minimum 3-month advance notice for any reduction in pre-existing credit card benefits. Specifically, changes to lounge access eligibility — such as adding spend conditions to previously unconditional benefits — cannot take effect in less than 90 days from public announcement.
The RBI circular also requires banks to: - Send individual notices to all affected cardholders (email + SMS) - Publish the change prominently on their website and card terms page - Allow cardholders to close the card without any penalty within 30 days of the benefit change notification
Impact: Several banks that have quietly changed lounge terms with minimal notice (30 days or less) may now face compliance scrutiny. HDFC's January 2025 Regalia Gold change gave 45 days notice, narrowly missing a potential violation.
Card holders who were not individually notified about a benefit change may have grounds to dispute charges under the new guidelines. Contact your bank's grievance officer if you believe you were not properly notified.