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Home FINANCE Credit Card New Charges: Kotak Mahindra Bank changes credit card charges! effective...

Credit Card New Charges: Kotak Mahindra Bank changes credit card charges! effective 1st June 2025

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Kotak Mahindra Bank has announced major changes in the charge structure for its credit card holders. These new rules will come into effect from June 1, 2025 and include charges on auto-debit failure, dynamic currency conversion (DCC), utility bill payments, education payments, wallet loading, online gaming, and new charges on fuel transactions. Also, the method of calculating the minimum amount due (MAD) has been changed.

Charges on failure of auto-debit

If payment fails via NACH, ECS or Auto-debit, a charge of 2% will be levied on the bounce amount, with a minimum of Rs 450 and a maximum of Rs 5,000.

Minimum Amount Due (MAD)

How will MAD be calculated from now on

1% on all purchases and cash transactions,

Plus 100% EMI, including finance charges, charges and taxes.

The MAD amount will be limited to 100 or Total Amount Due (TAD), whichever is lower.

Dynamic Currency Conversion (DCC) Charges

On foreign trade or transactions with foreign merchants.

3.5% charge will be levied on regular cards.

2% charge on Privy League Signature (Paid), White Reserve and Kotak Infinite cards.

This charge will be waived on Kotak Solitaire card.

Charges on utility bills

A 1% charge will be levied on utility bill payments above the prescribed limit in each statement cycle. This charge will not be applicable on White Reserve, Kotak Solitaire, Kotak Infinite, Kotak Signature and Myntra Kotak Credit Cards.

Charges on education payment

A 1% charge will be levied on educational payments made through third party apps. Premium card holders mentioned above will not have to pay this charge.

Charges on wallet loading

A 1% charge will be applicable on wallet loading above Rs 10,000 per statement cycle. This charge will not be applicable on some premium cards.

Charges on skill-based gaming

1% charge will be levied on skill-based online gaming transactions above Rs 10,000. This will also not apply to select cards.

Charges on fuel transactions

A 1% charge will be levied on fuel expenditure above the prescribed limit per cycle. This charge will not be applicable on IndianOil Kotak Card and other premium cards.

 

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