I have been experimenting with various credit cards in India. Alsmost every card in the beginner to intermediate level gives reward points when you use the card and these reward points can be then redeemed for gifts. HDFC Bank Card, ICICI Card and most of the other cards have a catalog of products from which you can choose to get vouchers from and then use those vouchers to get discounts while shopping.
When I did the math, it looks like you will get around 1% of the value of the purchase back in terms of points. The numbers may vary but it is always close to 1%. For example, for every Rs.150 spent, you may get 5 reward points. Looking at the price of the offers in the catalog, I evaluated that the value per reward point is approximately 33 Paise. So for Rs.150 you are getting back Rs.1.50 worth of points. That’s 1%.
But the catch here is that the products that you shop for usually are in MRP without any discounts and if you go and look up the same product in Flipkart or Amazon, it will be much cheaper.
I recently discovered that Citibank Rewards Card is perhaps the only CC in India which allows you to redeem the reward points as cash back. And this is at a very good rate of Rs.0.35 per point. I just redeemed my reward points and got a credit in my card account! Now this is real money with which I can buy anything and I am not restricted to their catalog of products
Do you know of any other credit card in India that allows cash back for points?