AU drops ₹499 fee — CheQ AU now lifetime free

AU Small Finance Bank has dropped the ₹499 joining and ₹499 renewal fees for the CheQ AU card, making it lifetime free. The LED variant now has a one-time fee of ₹999 plus GST. This change was made in the bank’s MITC and Schedule of Charges, version 2.21, last updated on 7th July 2026. The previous edition, version 2.19, still showed the old fees, confirming this as a change and not a reading error. AU announced nothing about this update, which was caught as a live drift on 24 August 2026. The CheQ AU card’s rewards structure remains the same, with advertised percentages being exactly double the actual return, as each CheQ Point is worth ₹0.50 at AU’s published redemption rates. For example, the base rung advertised as 1% actually pays 0.5%. Removing the ₹499 annual fee improves the card’s value, but it still has limitations, such as rewards expiring two years from credit and being credited to a CheQ app account rather than the card statement. Our take: while this change makes the CheQ AU card a better free option, its earn rates and redemption structure are still not favourable, so consider it only if you can maximize its specific rewards categories. The improved value is mostly relevant for existing cardholders, who will no longer have to pay the annual fee. New applicants should weigh the card’s benefits against its limitations before applying. The removal of the fee is a positive change, but it does not address the card’s underlying issues, such as the low redemption value of CheQ Points. Therefore, the CheQ AU card remains a niche option, best suited for those who can take full advantage of its rewards categories and are not deterred by its limitations.