Introduction
India’s credit card market is booming, fueled by the rise in digital payments, UPI adoption, and rising aspirations in Tier 1 and Tier 2 cities. In fact, the Reserve Bank of India (RBI) reported that the number of active credit cards crossed 10 crore in FY 2024–25, registering a year-over-year growth of 28.4%.
If you’re looking to maximize returns on your spending, cashback and rewards credit cards are your best bet. This article lists the 10 best credit cards in India for 2025 – chosen based on cashback rates, rewards programs, annual fees, user popularity, and issuer reputation.
5-Year Credit Card Trend in India (2020–2025)
Financial year | Credit Cards in Circulation5 | Avg. monthly spend per card | Annual Growth |
2020-21 | 5.8 crore | ₹10,200 | 11.8% |
2021-22 | 6.5 crore | ₹11,500 | 12.4% |
2022-23 | 7.1 crore | ₹13,000 | 13.0% |
2023-24 | 8.4 crore | ₹15,600 | 18.3% |
2024-25 | 10.2 crore | ₹17,850 | 28.4% |
Source: RBI Annual Credit Market Report, 2025
Top 10 Cashback & Rewards Credit Cards in India (2025)
1. HDFC Millennia Credit Card
- Fee: ₹1,000 + GST; waived on ₹1L annual spend
- Cashback: 5% on Flipkart, Amazon, Myntra 1% offline
- Best for: Young professionals shopping online
2. Axis Bank ACE Credit Card
- Fee: ₹499; waived on ₹2L spend
- Cashback: 2% flat, 5% on bill payments via Google Pay
- Best for: Bill payments and flat cashback seekers
3. Amazon Pay ICICI Bank Credit Card
- Fee: ₹0 (Lifetime Free)
- Cashback: 5% (Prime), 3% (non-Prime), 1% on all others
- Best for: Regular Amazon shoppers
4. SBI Cashback Card
- Fee: ₹999
- Cashback: 5% online merchants, 1% all others
- Best for: Pure cashback with max savings on large spends
5. Flipkart Axis Bank Credit Card
- Fee: ₹500
- Cashback: 5% on Flipkart; 1.5% elsewhere
- Best for: Flipkart, Myntra & Cleartrip users
6. IDFC FIRST WOW Credit Card
- Fee: Lifetime Free (secured card)
- Rewards: Up to 5% cashback/points
- Best for: First-time users building credit score
7. Tata Neu HDFC Credit Card
- Fee: ₹1,499
- Benefits: 5% NeuCoins on Tata brands (Croma, BigBasket)
- Best for: Shoppers within the Tata ecosystem
8. HSBC Smart Value Card
- Fee: ₹499 (first year free)
- Rewards: 3X to 10X reward points on online and utility spends
- Best for: Travel, dining, and EMI offers
9. AU LIT Credit Card
- Fee: Based on selected features
- Customize: Categories like travel, dining, shopping
- Best for: Users who want to control benefits monthly
10. IndusInd Pinnacle Credit Card
- Fee: ₹3,000
- cashback: 2.5% on online transactions
- Best for: High-spending customers needing luxury perks
Key RBI & NGO-Backed Insights
RBI Mandate (2023): Credit card bills must clearly mention reward point balances and expiry dates.
CUTS India (Consumer NGO) 2024 Survey:
- 61% of users prefer cashback over generic reward points.
- 38% unaware of reward point expiry policies.
- One in three users used co-branded cards (Amazon, Flipkart).
Rewards or Cashback: Which is Better?
Feature | Cashbackj Cards | Reward Points Cards |
Transparency | High- Fixed% return | Meduim - Redemption value varies |
Ease of Use | Direct statemant credit | Platform - specific redemptions |
Best For | Regular spenders, online shoppers | Travelers, luxury & lifestyle buyers |
Example | SBI Cashback, Axis ACE | HDFC Infinia, Amex Platinum |
Future of Credit Cards in India (2025-2030)
- Credit-Card-Based UPI Transactions (Approved in 2022, now scaling)
- Growth of BNPL (Buy Now Pay Later) cards for e-commerce
- Integration with CBDC (Digital Rupee) wallets by 2026
- AI-Driven Personalized Cashback Recommendations
Tips Before You Apply
- Maintain a good CIBIL score (700+)
- Compare annual fee vs. benefits
- Read the fine print (caps, exclusions, expiry)
- Choose cards that match your spending pattern
♦ Do your want to know about insurance apart from these ……
Frequently Asked Questions
Q1: Which is the best zero-fee cashback card in India?
Amazon Pay ICICI and IDFC FIRST WOW are top picks.
Q2: Can I use a credit card with UPI?
Yes, as per RBI’s 2022 announcement, select credit cards now work via UPI with NPCI-approved apps.
Q3: What documents are required to apply?
PAN, Aadhaar, Income proof, and a good credit score.
Conclusion
Choosing the right cashback or rewards credit cards isn’t just about flashy offers – it’s about value for your lifestyle. In 2025 and beyond, banks are getting smarter… and so should card, users. whether it’s shopping, paying bills, or travelling, the right card can give you amazing returns on your everyday spends.
