Cashback vs reward points

Cashback and reward points are the two primary ways credit cards return value on your spending. Cashback credits a percentage of your spend directly back to your statement as a rupee amount, simple, transparent, and with no conversion step. Reward points, by contrast, accumulate in a points balance that you later redeem for flights, merchandise, statement credit, or vouchers, usually at a fixed conversion rate the bank sets. Points-based cards can offer higher effective value if you redeem strategically (especially for flights or premium catalogue items), but cashback is more predictable and easier to value at face value.