Credit Card Rules From April 2026: What Cardholders Need To Know

Credit card usage has grown rapidly over the past few years, helped by the rise in digital payments and broader access to unsecured credit. At the same time, regulators have been strengthening oversight to improve transparency, monitor high-value transactions and ensure better credit discipline across the system.

From April 2026, a new set of rules will come into effect regarding tax reporting, updates in credit bureaus, and norms relating to the usage of cards. Alongside these regulatory changes, some card issuers have restructured fees and benefits, and changed how cardholders earn rewards and rack up charges in different categories, such as utility payments and wallet transactions.

High Value Transaction To Be Reported Under SFT Framework

Banks will report certain high-value credit card payments to the Income-tax Department as per the Statement of Financial Transactions (SFT) framework administered by the Central Board of Direct Taxes (CBDT). Payments exceeding a sum of Rs 10 lakh during a financial year through non-cash modes and payments exceeding a sum of Rs 1 lakh in cash are brought into the picture.

The framework will help authorities to track large expenditures and compare them with declared income. While reporting does not automatically trigger tax action, it increases the likelihood of scrutiny where spending patterns appear inconsistent with income filings.

Weekly Credit Bureau Reporting To Be Effective From April 2026

With effect from 1 April 2026, banks and non-banking financial companies (NBFCs) will have to report borrower data to credit information companies (CICs) every seven days, replacing the earlier 15-day cycle. Credit bureaus like CIBIL will be able to receive more frequent information about the repayment behaviour, outstanding balances and delinquencies.

The move, imposed under the direction of the Reserve Bank of India (RBI), is aimed at making credit scores more responsive to recent behaviour. Both delays and timely repayments will reflect faster in credit profiles.

PAN Being Mandatory Under RBI KYC Norms

Permanent Account Number (PAN) remains mandatory for new credit card issuance under KYC norms prescribed by the RBI, ensuring linkage of credit activity to verified financial identities.

In addition, CBDT allows credit card statements issued within the last three months to be used as valid proof of address for PAN applications. This provision simplifies documentation requirements, particularly for individuals without standard address documents.

SBI Card Review: Cashback Limit, Withdrawal Terms

The State Bank of India (SBI) has revised the cashback structure on its Cashback SBI Card from April 2026. The maximum monthly cashback has been reduced to Rs 4,000 from Rs 5,000 earlier.

Online transactions continue to earn 5 per cent cashback and offline transactions 1 per cent, but both are now subject to the revised cap. Redemption is restricted to fixed multiples, reducing flexibility in how rewards can be used.

Yes Bank Raises Multiple Thresholds

Yes Bank has revised thresholds beyond which charges apply across several categories. For the YES Private credit card, the utility payment threshold has been increased to Rs 1,00,000 from Rs 50,000, while other variants have also seen upward revisions.

Transactions exceeding these limits may attract a charge of around 1 per cent, depending on the card variant. Similar revisions apply to wallet loading and transport-related spends.

Issuers Increase Charges During Load On Wallets

Issuers including HDFC Bank, ICICI Bank and SBI Card have introduced or expanded charges on select categories. Wallet loading transactions above Rs 2,000 in a billing cycle may attract a fee of around 1 per cent.

Utility bill payments exceeding Rs 50,000 in a month may also be subject to similar charges. These fees vary across issuers and card types, reflecting a broader shift towards pricing high-value transactions.

Access to Lounges On Select Cards

Complimentary airport lounge access is being linked to minimum spending conditions, particularly on cards issued on the RuPay network. A commonly observed requirement is a minimum spend of around Rs 5,000 in the previous quarter.The number of eligible visits and exact thresholds differ across issuers and card variants.

Personal Uses of Corporate Credit Cards

Personal expenditure incurred on employer-issued credit cards will be treated as a taxable perquisite. Such expenses will be added to the employee’s taxable income, clarifying the tax treatment of corporate card usage.

What Customers Should Do

With multiple changes taking effect from April 2026, credit card users may need to review both spending patterns and repayment behaviour. High-value transactions above SFT thresholds reported to the Income-tax Department should be aligned with declared income to avoid scrutiny.

Given the shift to weekly reporting to CICs such as CIBIL under norms set by the Reserve Bank of India (RBI), timely repayments become more critical. Delays may reflect in credit scores within a shorter time frame, affecting future borrowing.

Users may also need to track category-wise spending more closely. Transactions such as wallet loading above Rs 2,000 or utility payments beyond Rs 50,000 may attract additional charges depending on the issuer. Similarly, meeting minimum spend thresholds is necessary to continue accessing benefits such as airport lounge access on certain cards issued on the RuPay network.

Reviewing updated terms issued by banks and aligning usage with revised thresholds and fee structures may help avoid additional costs under the new framework.