Kotak Mahindra Bank : Kotak Mahindra Bank has made some major changes in the terms and benefits of its Royal Signature Credit Card. These changes will come into effect from June 1, 2025.
If you have this card, then know that now the ways of spending, getting rewards and using the benefits are going to change.
You will still get these benefits
You will continue to get 4 reward points for every Rs 150 spent. Apart from this, you will also get the benefit of free use of domestic airport lounge twice every quarter. Facilities like surcharge waiver on fuel and railway ticket booking will also continue.
Limit imposed on fuel expenses
Now you will get 1% surcharge discount only on fuel expenses ranging from Rs 500 to Rs 5000. You will also be able to get a maximum discount of up to Rs 3500 in a year.
New limit for earning reward points
Now, reward points will be available only on spending up to Rs 70,000 on education and insurance in one statement cycle. Points will be available only on spending up to Rs 50,000 on utility bills and Rs 40,000 on government expenses.
Points will no longer be available on these expenses
Adding money to the wallet, paying rent, buying fuel and spending on online games will no longer earn you any reward points. Also, these expenses will no longer be counted in the milestone benefit.
The value of reward points has decreased
Now the value of each reward point has been reduced from 25 paise to 20 paise. To redeem in cash, it will be necessary to have at least 2000 points.
Lounge access will now be linked to expenses
Now you will get free airport lounge access only if you spend at least Rs 75,000 in the previous quarter. Only then will you get this benefit in the next quarter.
Interest rates and new charges also added
Now the interest rate on the card has increased from 3.5% to 3.75% per month. Along with this, a 1% transaction fee will also be charged on many expenses – like adding money to the wallet, online gaming, government expenses of more than 10 thousand rupees, utility bills of more than 50 thousand and fuel expenses of more than 35 thousand.
Fees will be levied on education fees as well
If you pay school or college fees through a third party app (like PhonePe, CRED or Mobikwik), then 1% charge will be levied. But if you pay directly through the school’s website or machine, then this charge will not be levied.
If auto debit fails then you will have to pay a penalty
If the auto debit EMI of your card fails, then you will have to pay a penalty of 2% on the total outstanding amount. This charge can be a minimum of Rs 450 and a maximum of Rs 5000. So if you use this card, then plan your expenses keeping these new rules in mind.
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