Axis Bank has announced a set of changes to the Airtel Axis Bank Credit Card, altering the cashback mechanics and removing airport lounge access entirely. The changes will take effect on April 12, 2026, according to a communication being rolled out to cardholders.
Airtel x Axis Bank Credit Card sharply devalued
While the headline cashback rates remain the same, the structure underneath those benefits has changed materially, making it harder for cardholders to maximise rewards without higher overall spending. Here is a closer look at what is changing and how the new structure compares with the old one.
Airtel Axis Bank Credit Card: Existing Benefits
The Airtel Axis Bank Credit Card has long been one of the strongest cashback cards in the sub-INR 1,000 annual fee category, especially for users in the Airtel ecosystem. Before this revision, the card offered:
- 25% cashback on Airtel Mobile, Broadband and DTH payments via the Airtel Thanks app (capped at INR 250 per month)
- 10% cashback on utility payments via the Airtel Thanks app (capped at INR 250 per month)
- 10% cashback on Swiggy, Zomato and BigBasket
- 1% cashback on other spends
- 4 complimentary domestic lounge visits per year
This straightforward structure made the card particularly attractive for households that frequently used food delivery, groceries and telecom services.
What Changes from April 12, 2026?
Axis Bank is introducing three major changes.
- Cashback Caps Now Linked to Base Spending: While the cashback percentages remain unchanged, the monthly caps will now depend on the amount of base cashback (1% category) earned in the same statement cycle. Under the new structure:
- 25% Airtel cashback will be capped at 2x the base cashback earned
- 10% Utility cashback will be capped at 1x the base cashback earned
- Previously, both categories had simple fixed caps of INR 250 per month.
- Swiggy / Zomato / BigBasket Cashback Removed: One of the most widely used benefits on the card has been removed. Previously, you used to get a 10% cashback on Swiggy, Zomato and BigBasket. Now, it has been replaced with a 10% value back on Zomato, Blinkit and District Movies. Value back is credited to the partner wallet, not the credit card statement. The maximum value back is INR 200 per partner per month, and you need to have a minimum order value: INR 499 for Zomato and Blinkit, with wallet loads and gift cards excluded. This change effectively converts cashback into ecosystem credit, which is generally less flexible.
- Domestic Lounge Access Removed: Axis Bank will also discontinue the four complimentary domestic lounge visits previously offered on the card.
Here is an illustration of the new computation logic from Axis Bank.
![The image is a table showing transaction details, amounts, benefits, and benefits earned with capping for various merchants. The merchants listed are Electronics, Airtel Mobile bill payment, Airtel other Utility Payment, Zomato, Blinkit, and District Movies. Each merchant has a corresponding transaction amount and benefit category, such as "1% Category [Base cashback]" or "10% category [Preferred partner]." The table also includes a total benefit in a month, which is 1,600. Notes at the bottom explain the cashback categories and conditions.](https://livefromalounge.com/wp-content/uploads/2026/03/Screenshot-2026-03-10-at-1.51.53-PM-1024x435.png)
What changed, really?
The Bank want a simple thing: don’t just use the card for its best feature; make it a daily driver so the Bank can also make money along the way. This is a move in that direction. Your high-end cashback comes in only if you spend on generic stuff with the Bank as well. In this case, many people used the card just to pay their Airtel bills, and that has been fixed. Basically, you can’t use the card for the best aspect and move on to the next one for the rest of your spending.
Bottomline
The Airtel Axis Bank Credit Card is not completely gutted, but the simplicity that made the card popular has clearly been diluted. The removal of lounge access and the shift to wallet-based rewards instead of cashback suggest that Axis Bank is tightening the economics of one of its most widely used entry-level credit cards.
What do you make of the changes to the Airtel Axis Bank Credit Card?
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1 percent on regular spend is too low and 25 percent on airtel was too high. Instead they could have reduced 25 percent to 10 percent. now its better i close the card.