Axis Bank Credit Card Devaluation (December 2025): Full Impact Analysis
Is the golden era of Axis Bank credit cards over?
For the past few years, Axis Bank ruled the Indian credit card market with products like the Magnus and Atlas. However, starting late 2025, the bank has rolled out a series of devaluations that significantly alter the value proposition of these cards.
If you hold an Axis Bank card, here is everything you need to know about the new rules affecting your rewards, lounge access, and milestone benefits.
1. Major Changes at a Glance
| Feature | Old Rule | New Rule (Effective Dec 2025) |
|---|---|---|
| Lounge Access | Unconditional on most premium cards | Spend-linked: Min spend of ₹50,000 in previous quarter required. |
| Utility Spends | Earned Rewards | Capped at 500 points per month / No rewards on some cards. |
| Rent & Wallet | Earned Rewards + Fees | No Rewards + 1% Transaction Fee. |
| Miles Transfer | 5:4 Ratio (Magnus) | 2:1 Ratio for generic partners; 5:4 reserved for Burgundy customers. |
2. Lounge Access: The "Spend to Fly" Rule
The biggest hit comes to casual travelers. Axis Bank has moved almost all its cards (except the super-premium Reserve) to a spend-based lounge access model.
- The Rule: To access a domestic airport lounge, you must have spent ₹50,000 in the previous calendar quarter.
- The Impact: If you use your card primarily for emergencies or small expenses, your lounge access is effectively revoked.
Expert Tip: If you travel frequently, consider switching to the Amex Platinum Travel or HDFC Regalia Gold, which still offer more lenient lounge policies.
3. The Magnus Devaluation: Is It Still Worth It?
The Axis Magnus was once the "King of Cards". With the monthly 25,000 points milestone removed earlier, the final nail in the coffin is the devaluation of conversion ratios.
New Conversion Ratios
- Axis Burgundy Customers: 5:4 (No change)
- Regular Customers: 2:1 (Significant drop)
If you are not a high-net-worth individual (HNI) banking with Axis Burgundy, the Magnus card now offers a reward rate of barely 2.4%, down from the whopping 6%+ it used to offer.
4. Axis Atlas: The Survivor
Amidst the carnage, the Axis Atlas card remains relatively unscathed, though with some "optimizations".
- Pros: Still offers 2 EDGE Miles per ₹100 on travel.
- Cons: Capping on "Travel" category spends has been introduced to prevent commercial misuse.
- Verdict: This remains the best card for travelers in the mid-range segment (Annual Fee: ₹5,000).
5. Excluded Categories (MCCs)
Axis Bank has expanded its "Negative List". You will NO LONGER earn points on:
- Utilities (Electricity, Gas, Water) – Capped or Removed
- Insurance – Capped at ₹2,000 worth of spends
- Government Services
- Education
- Gold/Jewelry
6. Should You Close Your Axis Card?
KEEP IT IF:
- You are an Axis Burgundy customer.
- You hold the Axis Atlas and spend heavily on flights/hotels.
- You have the Axis Airtel card (still great for bill payments).
CLOSE/DOWNGRADE IF:
- You hold the Magnus but don't meet Burgundy criteria.
- You hold entry-level cards like My Zone primarily for lounge access (which is now gone).
Conclusion
The 2025 devaluation is a clear signal: Axis Bank wants profitable customers, not "points hunters". If your spending is high and genuine, these cards still offer value. For everyone else, it might be time to look at HDFC Bank or American Express.
FAQs
1. Which Axis Bank cards still offer unlimited lounge access?
Only the Axis Reserve continues to offer unlimited lounge access without spend criteria. The Axis Atlas offers tiered access based on your tier (Silver/Gold/Platinum).
2. Is the Axis Flipkart card affected?
Yes, the cashback on the Flipkart Axis card was already devalued to 1.5% on non-Flipkart spends, and lounge access is now spend-linked.
3. What is the best alternative to Axis Magnus?
The HDFC Infinia is the direct alternative. If you don't qualify, look at the Amex Platinum Travel for milestone benefits.