Reward Point Devaluations: A Pattern to Watch For, Not a One-Off

What a devaluation actually looks like

A devaluation is any change that makes points worth less than they used to be: a lower earn rate on categories that used to accelerate, a reduced multiplier on a bank's own shopping portal, a worse transfer ratio to an airline partner, or tighter caps on the best redemption options. None of these show up as a single dramatic announcement, they usually land quietly in a terms update.

A real example, not a hypothetical one

HDFC's own SmartBuy portal is a case in point: some cards that earned as much as 5X or 10X the base reward rate on flight and hotel bookings through the portal saw that multiplier cut down to 3X in early 2026. Anyone who'd planned a redemption strategy around the older, higher rate found the math had changed under them, not because they did anything differently, but because the program itself was recalibrated. This is exactly the kind of change that never gets a dramatic headline, it just quietly becomes the new normal the next time you check the portal.

Why this keeps happening

Reward programs cost banks real money, every point issued is a liability against future redemption. When redemption patterns shift, more cardholders finding and using high-value transfer partners, for instance, banks periodically recalibrate the program to control that cost. This isn't specific to one issuer or one program, it's happened across nearly every major Indian card at some point, on shopping portal multipliers, transfer partner rosters, and redemption caps alike.

What this means for how you should actually think about points

Treat reward points as a currency that loses purchasing power over time, similar in spirit to inflation, rather than a static store of value. Holding a large points balance for years, waiting for the "perfect" redemption, carries real risk: the redemption you're waiting for might be worth meaningfully less, or gone entirely, by the time you use it.

How to actually protect yourself

Redeem points on a reasonably regular cadence rather than hoarding indefinitely, and when a bank announces a rate cut or portal change, treat it as a signal to reassess your redemption plan immediately rather than assuming the old value still applies. Following a card's own update notices, or a source that tracks these changes, is worth the occasional five minutes it takes to stay current.