AU enters credit card market — ₹7,999 for Zenith
AU Small Finance Bank launches four credit cards, including Zenith with a ₹7,999 fee, marking its entry into the credit card business. The cards offer rewards, but with limitations, including points redeemable only in AU's catalogue.
AU Small Finance Bank has become the first small finance bank to issue credit cards, launching a range of four cards: Zenith, Vetta, Altura+, and Altura. The Zenith card has a fee of ₹7,999 and offers 5% rewards on dining, while all four cards have a fee-waiver ladder. The launch, which occurred in May 2021, was a significant move for AU Small Finance Bank, but the rewards programme has been criticized for its limitations. The points earned can only be redeemed in AU’s own catalogue, which has been devalued over time due to changes such as the 2023 voucher cut and 2024 exclusions. Our take: given the closed-loop redemption system and devaluing rewards programme, cardholders should carefully consider the value proposition of AU’s credit cards before applying. The ₹7,999 fee for the Zenith card is substantial, and the rewards may not be worth the cost for many users.