Another day, another devaluation. As we approach the end of 2022, credit card issuers seem to be competing in devaluations. Bank of Baroda (BoB) is the latest to announce a significant devaluation of its credit cards. The changes affect also the top variant Eterna. Here is everything to know about the upcoming devaluation from BoB effective 15th November 2022.
1. Regular Reward Rate reduced
BoB will now start offering a reduced reward rate on ‘special MCCs’. The new reward rate is half of what we used to earn earlier. This is something similar to what Yes Bank does for its credit cards.
| Variant | Core Rewards on Special MCCs | Core Rewards on other MCCs |
|---|---|---|
| Swavlamban | 2 RP/Rs 100 ~0.5% | 4 RP/Rs 100 ~1% |
| Easy | 0.5 RP/Rs 100 ~0.125% | 1 RP/Rs 100 ~0.25% |
| Select | 0.5 RP/Rs 100 ~0.1% | 1 RP/Rs 100 ~0.2% |
| Premier | 1 RP/Rs 100 ~0.25% | 2 RP/Rs 100 ~0.5% |
| Eterna | 1.5RP/Rs 100 ~0.375% | 3 RP/Rs 100 ~0.75% |
| Prime | 1 RP/Rs 100 ~0.2% | 2 RP/Rs 100 ~0.4% |
So, what are these special MCCs? My first thought was it would be rent and insurance etc. But, BoB seems to think otherwise. They have gone ahead and even added some of the regular MCCs like Supermarket and Fast Food in that. Below is the complete list of MCCs as per BoB’s notification. This pretty much hits most of our purchase categories. The special MCCs will also not be eligible for 5X accelerated rewards on the above credit card variants.
So, Eterna which was earning 5X on almost all online transactions is now suddenly an average card with a low reward rate.
2. More Changes on Easy and Select Credit Cards
With special MCCs coming in, there are other changes that happen on the Easy and Select credit cards.
- BoB Easy Credit Card: 5X rewards only on Departmental Stores and Movie Ticket Purchases. Grocery spends are not eligible anymore.
- BoB Select Credit Card: 5X rewards only on Online and Dining spending. The second change is the value of 1RP now reduces from 25 paise to 20 paise.
- BoB Prime Credit Card: The FD-backed Prime Card also gets hit in this devaluation. We used to get 4 RP/Rs 100 but now get up to 2RP/Rs 100 based on purchase category. The second change is the value of 1RP now reduces from 25 paise to 20 paise.
My View
BoB now has some of the worst reward rates on its credit cards. All these MCC-based rewards are difficult to keep track of and only add complexity to our life. Credit card rewards need not be this difficult to earn.
I would recommend SC Smart, Axis Ace, and SC Ultimate. Fewer worries about whether you will get rewards on a transaction.
If you hold Eterna for which you need to pay an annual fee, then it is time to reconsider that. With all these restrictions, it is not worth it anymore. Even SBI Cashback can be considered now as an good option.
