Reward points expiry
Short answer
Reward points are a depreciating currency: most expire 2–3 years after being earned (indicative, as of 2026), all of them die when the card closes, and banks periodically devalue what a point buys. The rules — expiry, forfeiture, redemption fees — must be disclosed in your card's terms. The defence is a habit: redeem twice a year, and always before closing a card.
What it means
Points are a liability on the bank's books, and every expired or forfeited point is that liability erased. Expiry windows, closure forfeiture and devaluations are all levers on the bank's side. Yours is disclosure: the RBI Master Direction on credit cards requires reward terms and their changes to be spelled out in the card's terms and communicated — the fine print is where the truth lives.
The common mistake
Hoarding for something big. Points are not a savings account — they earn no interest, face devaluation, and sit under an expiry clock. Meanwhile a devaluation can cut your "flight next year" fund by a third overnight. Redeem regularly at good value instead of maximally at imagined value.
The subtlety worth knowing
Devaluations arrive as quiet catalogue updates — the point did not change, the price in points did. This is why cashback suits most people better: rupees do not devalue by memo. If you do play the points game, play it actively or not at all.
Related
All figures on this page are indicative and dated. Rates and fees differ by bank and change over time. Always verify with your bank's official schedule of charges.
Frequently asked questions
Where do I check my points' expiry?
The rewards section of the bank's app or portal usually shows points by expiry bucket, and the card's reward terms state the validity period. If the app shows only a total, assume the oldest points are 2-3 years from their earning date and redeem ahead of that.
What is the smartest way to redeem?
Compare the per-point value across catalogue options - statement credit, vouchers, travel. It varies widely: the same point might be worth 20 paise as merchandise and 50 paise as a travel transfer. Pick the high-value lane, mind the redemption fee, and avoid letting points pile up into devaluation risk.
Sources
The regulation and official pages this page is checked against. If one of them disagrees with us, it wins.
- Master Direction — Credit Card and Debit Card (Issuance and Conduct) Directions, 2022 — Reserve Bank of India
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Written and checked by the CardSamajh editorial desk · Last reviewed: · How we check this