If you are a Kotak Mahindra Bank customer, there is an important update for you.
The bank is changing several charges related to its banking services.
These new rules will come into effect from April 1.
The changes include higher fees for debit cards, charges for failed automatic payments, limits on cash transactions, and fees for third-party cash deposits or withdrawals.
Because of these updates, some customers may have to pay more for certain banking services.
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Failed Auto Payments Will Now Cost More
Many people set up automatic payments for things like loan EMIs, SIP investments, insurance premiums, or utility bills.
These payments are usually processed through Electronic Clearing Service (ECS) or National Automated Clearing House (NACH).
If there is not enough money in your bank account on the payment date, the transaction fails.
In such cases, the bank will now charge a penalty.
First failed transaction: ₹500
Second and every additional failure: ₹550 per transaction
However, some account types will not have to pay this charge.
These include basic savings accounts, institutional savings accounts, and certain NRE/NRO accounts.
Charges on Third-Party Cash Transactions
The bank is also introducing charges for third-party cash transactions.
This happens when someone else deposits or withdraws money from your account on your behalf.
Customers will get free third-party transactions up to ₹25,000 per month.
If this limit is crossed, the bank will charge ₹5 for every ₹1,000, with a minimum fee of ₹150 per transaction.
Debit Card Fees Are Going Up
The annual fees for some debit cards are also being increased.
The EveryDay Debit Card fee will rise from ₹259 to ₹300 per year.
The Pay Shop More Debit Card will also become more expensive.
For some accounts, the annual fee will increase from ₹199 to ₹285 after the first year.
For other Pay Shop More cards, the yearly fee will go up from ₹259 to ₹285.
New Limits on Cash Transactions
The bank has also updated rules for cash transactions at branches.
Customers who do not meet the bank’s required Relationship Value will only get three free cash transactions per month, with a combined limit of ₹1 lakh.
If they exceed this limit, the bank may charge additional fees.
How the Bank Calculates Relationship Value
The bank calculates Relationship Value by combining several financial factors.
These include:
Average balance in savings and current accounts
Investments in fixed deposits, mutual funds, and insurance
30% of the sanctioned loan amount
30% of the value of the demat account
Based on this combined value, the bank decides the level of benefits and free services available to the customer.
Because of these changes, Kotak Mahindra Bank customers should review their account balances and payment schedules carefully before April 1 to avoid extra charges.