Kotak Mahindra Bank Revises Credit Card Fees: What Changes On June 1, 2025?

Starting June 1, 2025, Kotak Mahindra Bank will implement revisions to its credit card fees. This update will introduce new charges across a variety of transaction categories including utility bills, wallet reloads, online gaming, and fuel purchases. Additionally, the method used to determine the Minimum Amount Due (MAD) on card statements will undergo changes, potentially affecting how users manage their credit card payments.

The bank has placed specific emphasis on fees associated with standing instruction failures, such as Auto-debit returns via NACH, ECS, or Auto Debit, which will incur a 2.0% penalty on the failed amount, with a minimum of Rs 450 and a ceiling of Rs 5,000. This move is part of a broader adjustment in the bank's fee structure, which also includes modifications to dynamic currency conversion charges and fees tied to spending in certain categories.

Understanding Fee Adjustments for Specific Transactions

For transactions carried out in foreign currencies, the Dynamic Currency Conversion (DCC) fee has been set at 3.5% for most Kotak credit cards, with some exceptions. Notably, for cardholders of the Privy League Signature (Paid Variant), White Reserve, and Kotak Infinite cards, the fee is reduced to 2%, and it is completely waived for Kotak Solitaire Credit Card holders. This adjustment reflects the bank's strategy to offer varied benefits across its range of credit card products.

In terms of the Minimum Amount Due (MAD), it will now be calculated by adding 1% of all purchase transactions and cash advances to the entirety of any EMIs, finance charges, applicable fees, and taxes—a change that could influence payment strategies for cardholders. The bank ensures that the MAD will be clearly itemized in the summary section of monthly statements to maintain transparency.

Category-Specific Charges

The bank has also detailed fees on specific transaction types. For instance, a charge of 1% will be levied on cumulative utility bill payments that surpass a set threshold every statement cycle. However, this charge will not apply to holders of the White Reserve, Kotak Solitaire, Kotak Infinite, Kotak Signature, and Myntra Kotak Credit Cards.

Similarly, charges will be imposed on education payments, wallet reloads, online skill-based gaming, and fuel purchases that exceed Rs 10,000 per statement cycle, at a rate of 1%. These fees, however, will not affect holders of the aforementioned card variants, showcasing Kotak Mahindra Bank's approach to offering benefits tailored to different customer segments.

The restructuring of transaction fees by Kotak Mahindra Bank, set to take effect from June 1, 2025, marks a significant change in how the bank approaches credit card charges across a wide range of transactions. With adjustments in fees for standing instruction failures, dynamic currency conversion, and specific spending categories, alongside a new methodology for calculating the Minimum Amount Due, cardholders are encouraged to review the changes carefully to manage their credit card payments effectively.