Kotak Mahindra credit cards: Changes rates, fees, rewards announced

Changes in reward point accrual and redemption coming as well after bank issues revised cardholder agreement

Kotak Mahindra Bank has issued a Revised Cardholder Agreement, effective June 1, detailing adjustments to interest rates, fees, minimum‐due calculations and rewards programmes. According to the bank’s website, the changes will align card terms with customer usage trends and regulatory guidelines.

 

Interest rate Revision

 

According to the revised agreement, the monthly finance charge on most credit cards will increase from 3.50 per cent (42 per cent per annum) to 3.75 per cent (45 per cent) with effect from June 1, 2025. Premium products such as White Reserve and Kotak Solitaire Credit Card remain unchanged at their existing rates.

 

New fees and penalties

 

From June 1, cardholders will see the following fees applied:

 

Standing‐Instruction Failure/Auto‐debit Return: 2 per cent of the bounced amount (minimum Rs 450, maximum Rs 5,000).

 

Dynamic Currency Conversion: 2 per cent on select premium cards (Privy League Signature, Infinite, White Reserve); 3.5 per cent on other cards; waived for Solitaire cards.

 

Category‐Based Transaction Fee: 1 per cent on cumulative spends in utilities, education payments, wallet reloads, online skill‐based gaming and fuel per statement cycle; exemptions for Infinite, White Reserve, Solitaire and Signature variants.

 

Minimum Amount Due (MAD) Calculation

 

From June 1, MAD will be computed as:

 

1 per cent of total purchase transactions + 1 per cent of cash advances + 100 per cent of EMI, finance charges, fees and tax, subject to a minimum of Rs 100.

 

Rewards earning and redemption changes

 

Effective June 1, the bank will restrict reward points accrual on spends in utilities, education and insurance payments, wallet top-ups, rent, government services and online gaming. Redemption values will also be revised:

 

Points on paid Royale, League and Urbane cards will convert at 7 paise, down from 10 paise, per point, with a 2,000-point minimum.

 

Kotak 811 Credit Card points will convert at 10 paise, down from 25 paise, with the same minimum.

 

What cardholders should do

 

Review statements: Compare current charges against the revised schedule.

 

Plan Payments: To minimise higher finance costs, settle outstanding balances before the due date.

 

Assess Rewards Impact: Check whether the new category restrictions affect your typical spend patterns.

 

Disclosure: Entities controlled by the Kotak family have a significant shareholding in ‘Business Standard’.