Electricity, broadband, mobile recharge, gas, insurance premiums, rent — these recurring bills can easily add up to ₹15,000–₹50,000 per month for an Indian household. Yet most credit cards treat utility payments as second-class transactions, either excluding them from rewards entirely or capping earn rates at 0.5%. The cards below are the exceptions — they actually reward you for paying bills.
This post is part of our Best Credit Card by Spend Category series.
Why Most Cards Exclude Utility Payments
Card issuers make money from interchange fees — the percentage they charge the merchant on each transaction. Utility companies negotiate very low interchange rates (often 0.3–0.5% vs. 1.5–2% for retail). If a bank offered 2% rewards on a 0.3% interchange transaction, it would lose money on every bill you paid. That is why:
- HDFC Infinia, Diners Black, and most super-premium cards cap or exclude utility MCCs
- ICICI Emeralde, Sapphiro, and Amazon Pay cards offer zero accelerated rewards on utility bills
- Many cards now levy a 1% surcharge on utility bills paid via third-party apps (ICICI, Axis, SBI have introduced this in 2024-2026)
The workaround is to use cards specifically designed for bill payments, or to route payments through platforms that code transactions differently.
Top 5 Cards for Utility Bill Payments (2026)
1. Axis ACE Credit Card
The most popular utility bill card in India. Earn 5% cashback on all utility bills paid via Google Pay — electricity, water, gas, broadband, mobile recharge, DTH, and municipal taxes. At ₹6,000/month in bills, that is ₹300/month or ₹3,600/year in cashback.
- Utility earn rate: 5% (via Google Pay)
- Other earn rates: 4% on Swiggy/Zomato/BigBasket, 2% on everything else
- Annual fee: ₹499 (waived at ₹2L spend)
- Watch out: The 5% applies only when bills are paid through Google Pay; direct biller payments earn 2%
2. Airtel Axis Bank Credit Card
Unbeatable for Airtel ecosystem users. Earn 25% cashback on Airtel mobile, DTH, and broadband bills paid via the Airtel Thanks app, and 10% cashback on other utility bills (electricity, water, gas) via the same app.
- Airtel bills: 25% cashback
- Other utility bills (via Airtel Thanks): 10%
- Annual fee: ₹500 (waived at ₹2L spend)
- Best for: Airtel broadband + mobile users who can route other bills through Airtel Thanks
3. PhonePe SBI Card SELECT BLACK
The highest utility cashback rate at 10% on bills paid via PhonePe, with a generous monthly cap of ₹2,000. The annual fee of ₹2,999 is justified only if your monthly utility bills exceed ₹5,000 and you consistently use PhonePe for payments.
- Utility earn rate: 10% via PhonePe
- Monthly cap: ₹2,000
- Annual fee: ₹2,999
- Best for: High bill-payers (₹10,000+/month) who use PhonePe
4. IDFC FIRST Select Credit Card
A lifetime-free card that includes utility payments in its rewards programme — 1 reward point per ₹200 spent on utility bills (1 RP = ₹0.25). While the earn rate is modest at ~0.125%, the card's real value is its lifetime-free status combined with 10X rewards on dining and travel. Utility spend contributes to overall spend milestones for lounge access.
- Utility earn rate: ~0.125% (1 RP/₹200)
- Annual fee: Lifetime free
- Watch out: 1% surcharge on utility bills exceeding ₹20,000/cycle
- Best for: Users who want a single free card covering all categories at base rates
5. SBM OneCard Credit Card
A zero-annual-fee card offering up to 10% cashback on electricity, water, gas, and other utility bills. The dynamic cashback structure means rates vary based on your spending pattern and the platform's algorithm. A good backup utility card at zero cost.
- Utility earn rate: Up to 10% (dynamic)
- Annual fee: ₹0 (lifetime free)
- Watch out: Cashback percentages are dynamic and not guaranteed; always check your personalised offer in the OneCard app
Full Comparison Table
| Card | Utility Earn Rate | Payment Platform | Monthly Cap | Annual Fee |
|---|---|---|---|---|
| Axis ACE | 5% | Google Pay | No specific cap | ₹499 |
| Airtel Axis Bank | 10–25% | Airtel Thanks | Category-specific | ₹500 |
| PhonePe SBI SELECT BLACK | 10% | PhonePe | ₹2,000 | ₹2,999 |
| IDFC FIRST Select | ~0.125% | Any | No cap | Lifetime Free |
| SBM OneCard | Up to 10% | OneCard app | Dynamic | Lifetime Free |
Rent Payment via Credit Card — The Real Math
Paying rent with a credit card has become popular through platforms like CRED, NoBroker, and RedGiraffe. But does the maths actually work in your favour?
Platform Fees (as of mid-2026)
| Platform | Fee Range | Notes |
|---|---|---|
| RedGiraffe | ~0.39% + GST | Lowest in market; effective ~0.46% |
| NoBroker Pay | 0.39%–0.99% + GST | Varies by card; effective 0.46%–1.18% |
| CRED Rent Pay | 1.0%–1.5% | Higher fee; uses CRED coins for partial offset |
When Rent Payment Works
Paying ₹25,000 rent via credit card only makes financial sense if:
- Platform fee < card earn rate: If your card earns 2% on all spends and the platform charges 1%, you net 1%. At ₹25,000 rent, that is ₹250/month or ₹3,000/year.
- Your card still earns on rent-coded transactions: Most major banks (ICICI, Axis, SBI) have excluded rent (MCC 6513) from reward accrual in 2025-2026. Verify with your issuer before relying on this.
- You need credit utilisation for spend milestones: Rent counts toward annual spend thresholds for fee waivers and milestone rewards — even if it does not earn bonus points.
When It Does Not Work
- If your card excludes rent from rewards, you are paying 0.5–1.5% in platform fees for zero return.
- CRED at 1.5% fee is almost never worth it unless you have a card earning 3%+ on wallet transactions — very rare.
- If you are paying rent only for the interest-free period (cash-flow management), calculate whether the platform fee exceeds the interest you would earn on a savings account for that period.
Insurance Premium Payment Strategy
Insurance premiums are another large expense where card rewards are tricky:
- IDFC FIRST Select earns base reward points (1 RP/₹200) on insurance premiums — modest but not zero.
- HDFC Infinia and Diners Black earn reward points on insurance but at reduced rates (2 RP/₹150 instead of 5 RP/₹150).
- Most other premium cards (ICICI Sapphiro, Axis Magnus) exclude insurance from accelerated earn rates entirely.
- Strategy: Use a flat-rate cashback card like SBI Cashback (5% online) for premiums paid through insurer websites — but verify the MCC coding first.
Pro Tips for Utility Bill Payments
- Route through the right platform: Axis ACE earns 5% only via Google Pay. Airtel Axis earns 25% only via Airtel Thanks. Direct biller payment earns base rates.
- Watch for the 1% surcharge: ICICI, Axis, and SBI now levy a 1% fee on utility bills paid through third-party apps. Factor this into your net reward calculation.
- IDFC FIRST Select's ₹20,000 threshold: Utility bills above ₹20,000 per statement cycle attract a 1% surcharge — split bills across cycles if possible.
- Set up auto-pay: Most card bill-payment rewards work with auto-pay. Set up recurring payments via Google Pay or the card app to never miss a billing cycle.
- Track policy changes: Banks frequently revise utility reward policies. What works in June 2026 may change by December 2026 — check your card's latest terms quarterly.
Find your ideal utility card → CreditBrain Card Explorer
See how utility bill cashback fits your overall rewards → CreditBrain Expense Profiler