Kotak Mahindra Bank has announced significant changes to its credit card charge structure, effective June 1, 2025. The new rules introduce fees for various transactions, including auto-debit failures, dynamic currency conversions, utility bill payments, education payments, wallet loading, online gaming, and fuel transactions. Additionally, the method of calculating the minimum amount due (MAD) has been revised.
One of the key changes is the introduction of a 2% charge on auto-debit failures, with a minimum fee of Rs 450 and a maximum of Rs 5,000. The MAD calculation has also been modified, with 1% of all purchases and cash transactions, plus 100% of EMI, finance charges, charges, and taxes, subject to a minimum of Rs 100 or the total amount due.
Other notable changes include a 3.5% charge on dynamic currency conversions for normal cards, with lower rates for premium cards such as Privy League Signature, White Reserve, and Kotak Infinite. A 1% charge will be levied on utility bill payments above the prescribed limit, education payments made through third-party apps, wallet loading exceeding Rs 10,000, and skill-based online gaming transactions above Rs 10,000.
However, some premium cards, such as White Reserve, Kotak Solitaire, Kotak Infinite, and Kotak Signature, will be exempt from certain charges, including utility bill payments, education payments, and wallet loading. Similarly, the IndianOil Kotak Card and other premium cards will not be subject to the 1% charge on fuel transactions above the prescribed limit.
It is essential for Kotak Mahindra Bank credit card holders to review these changes and understand how they will impact their transactions and payments. The new charges may lead to increased costs for cardholders who frequently use their cards for international transactions, utility bill payments, education payments, or online gaming. Nevertheless, premium cardholders may continue to enjoy exemptions from certain charges, making it crucial to review the terms and conditions of their specific card to minimize any potential fees.