AU Zenith Credit Card Devaluation: Key Changes Effective January 2026

AU Small Finance Bank has officially announced a major devaluation of the AU Zenith Credit Card, effective 1 January 2026. Existing cardholders have started receiving direct email communication outlining sharp cuts in reward rates and the complete removal of milestone benefits that earlier defined the card’s premium appeal.​

This move materially changes the economics of the card. What was once positioned as a strong dining- and lifestyle-focused premium offering now shifts towards a lower, more controlled reward structure. The timing also reflects a broader industry trend, where banks are reining in reward costs amid rising competition in India’s premium credit card segment.​

For current and prospective cardholders, this update makes it essential to reassess whether the AU Zenith Credit Card still fits their spending profile.

Table of Contents:

1. AU Zenith Credit Card Reward Rate Changes from January 2026
2. AU Zenith Credit Card: Old vs New Reward Rates
3. AU Zenith Credit Card Milestone Benefit Changes
4. Discontinued Milestone Benefits
5. New Milestone Structure Introduced
6. AU Zenith Credit Card Devaluation: Effective Date & Key Details
7. Impact on Cardholders and Available Alternatives

AU Zenith Credit Card Reward Rate Changes from January 2026

From January 2026, AU will reduce reward points earned per ₹100 spent across most key categories. The biggest impact is on dining, which was earlier the card’s strongest value driver.​

Revised Reward Rates per ₹100 Spent

• Base spends: Reduced from 5 RP to 3 RP
  This represents a nearly 40% reduction in earning rate on everyday transactions such as retail shopping or online spending. Over a year, a user spending ₹6 lakh annually on base categories would earn 12,000 fewer points than before.​
   
• Dining spends: Reduced from 20 RP to 5 RP
  This is the steepest cut at approximately 75%, significantly lowering the effective reward rate for restaurant bills. For cardholders who used Zenith primarily for dining spends, the value proposition weakens sharply post-2026.​
   
• International transactions: Reduced from 10 RP to 5 RP
  A 50% reduction makes overseas spending less rewarding, especially when combined with forex markup costs. The card loses its edge for frequent international travellers who relied on higher earning rates earlier.​
   
• Grocery & department stores: Reduced from 10 RP to 5 RP
  Another 50% cut, impacting users who routed household and lifestyle spending through the card to accumulate points faster.​
   
• Insurance, utilities & telecom: Remain at 1 RP
  These low-reward categories remain unchanged, continuing to offer minimal returns, largely suitable only for maintaining bill payment discipline rather than reward accumulation.​
   
• Other spends: No rewards
  Categories that earlier did not earn rewards continue to remain excluded, offering no incremental benefit.​

AU Zenith Credit Card: Old vs New Reward Rates

Spend Category	Current RP per ₹100	New RP per ₹100 (Jan 2026)	Change
Base spends	5	3	↓ ~40%
Dining	20	5	↓ ~75%
International transactions	10	5	↓ ~50%
Grocery & department stores	10	5	↓ ~50%
Insurance, utilities & telecom	1	1	No change
Other spends	0	0	No change

While the redemption value of points broadly remains between ₹0.25 and ₹1 per point, depending on voucher or travel usage, the lower earning rates drastically reduce effective returns. In high-impact categories like dining, the real-world reward value drops to a fraction of what cardholders enjoyed earlier.​

AU Zenith Credit Card Milestone Benefit Changes

The devaluation is not limited to reward rates. Milestone benefits, which were a major differentiator for the Zenith card, are being completely restructured.​

Discontinued Milestone Benefits

• ₹1,000 brand voucher every quarter on ₹2 lakh spend
  This quarterly benefit encouraged structured spending and offered predictable value for mid-to-high spenders. Its removal eliminates a guaranteed return that many users factored into their annual card strategy.​
   
• Complimentary Taj Epicure membership on ₹8 lakh annual spend
  This was a strong lifestyle perk for premium users. Its discontinuation removes one of the most tangible non-reward incentives tied to long-term spending.​

New Milestone Structure Introduced

• 1,000 bonus reward points on monthly spends of ₹50,000 or more
  Instead of cumulative quarterly or annual milestones, rewards are now linked to consistent monthly spending, reducing flexibility for users who preferred batching spends.​
   
• Capped at one bonus per statement cycle
  Even if spending significantly exceeds ₹50,000 in a month, the bonus remains capped, limiting upside for high spenders.​

Overall, this shift favours steady, moderate spenders rather than users who strategically plan larger spends to unlock milestone rewards.​

AU Zenith Credit Card Devaluation: Effective Date & Key Details

AU Small Finance Bank has clearly stated that:

• All transactions from 1 January 2026 onward will earn rewards under the revised structure.
• Reward points earned before this date will retain their existing redemption value.​

This means users holding sizeable unredeemed balances may consider redeeming points before 31 December 2025, especially if they typically redeem for higher-value options like travel or premium vouchers.​

An important observation is that, as of late December 2025, the official AU Zenith product page still reflects older benefits, despite direct email communication confirming the changes. Cardholders should rely on official communication rather than website listings for decision-making.​

Impact on Cardholders and Available Alternatives

The biggest impact is felt by:

• Frequent diners, where effective rewards drop by over 70%.
• International travellers, who now earn half the points while still paying forex charges.
• High-spend users, who lose both higher earn rates and meaningful milestone benefits.​

AU’s push toward Zenith+ upgrades has received mixed early feedback, with concerns around similar reward pressures emerging there as well.​

For users re-evaluating premium credit cards, options like HDFC Infinia or SBI Prime may offer relatively more stable reward structures, subject to eligibility, fee comfort, and spending pattern alignment.​

Conclusion

The AU Zenith Credit Card devaluation from January 2026 marks a clear shift away from its earlier high-reward, lifestyle-focused positioning. While the card remains functional, its value for premium and high-spend users is significantly reduced. Existing cardholders should review their spending behaviour, redeem accumulated points in time, and reassess whether the card still deserves a place in their long-term credit card portfolio.​

Want detailed information about the AU Zenith Credit Card, including its benefits, rewards, and charges? Check the AU Zenith Credit Card for a complete overview.

FAQs on AU Zenith Credit Card Devaluation

1. When does the AU Zenith Credit Card devaluation take effect?
The revised reward rates and milestone benefits apply to all transactions made on or after 1 January 2026.​

2. Will existing reward points lose value after January 2026?
No. Points earned before the effective date retain their current redemption value. Only future earning rates are impacted.​

3. Which spend category is most affected by the devaluation?
Dining spends face the steepest cut, with reward points reduced by approximately 75%, making it the most impacted category.​

4. Are insurance, utility, and telecom payments affected?
No. These categories continue to earn 1 reward point per ₹100 spent, unchanged from the current structure.​

5. Are quarterly vouchers and Taj Epicure benefits still available?
No. All quarterly vouchers and the annual Taj Epicure milestone benefit are fully discontinued from 2026.​

6. Should cardholders redeem points before January 2026?
If you hold a large reward balance and typically redeem for higher-value options, redeeming before 31 December 2025 can help preserve value.​