Kotak Mahindra Bank has introduced significant changes to its credit card fee structure, effective from June 1, 2025.
These updates include charges on auto-debit failures, dynamic currency conversion (DCC), utility bill payments, education fees, wallet loading, online gaming, and fuel transactions. Additionally, the calculation method for the Minimum Amount Due (MAD) has been revised.
Charges on Auto-Debit Failure
If payment fails through NACH, ECS, or auto-debit, a 2% charge will apply to the bounce amount, with a minimum of Rs 450 and a maximum of Rs 5,000.
Changes in Minimum Amount Due (MAD) Calculation
The new MAD calculation will include:
1% of all purchases and cash transactions
100% of the EMI, including finance charges, fees, and taxes
The MAD will be capped at either Rs 100 or the Total Amount Due (TAD), whichever is lower.
Dynamic Currency Conversion (DCC) Charges
For foreign transactions or purchases with foreign merchants:
A 3.5% charge will apply to regular cards
A 2% charge for Privy League Signature (Paid), White Reserve, and Kotak Infinite cards
The charge will be waived for Kotak Solitaire cardholders.
Charges on Utility Bill Payments
A 1% fee will be charged on utility bill payments exceeding the prescribed limit in each statement cycle. This does not apply to premium cards such as White Reserve, Kotak Solitaire, Kotak Infinite, Kotak Signature, and Myntra Kotak Credit Cards.
Charges on Education Payments
A 1% fee will be applied to education payments made via third-party apps. Premium cardholders mentioned above will be exempt from this charge.
Charges on Wallet Loading
A 1% fee will apply to wallet loading above Rs 10,000 per statement cycle. Premium cardholders will not be charged for this.
Charges on Skill-Based Gaming
A 1% charge will be levied on skill-based online gaming transactions over Rs 10,000. This will not apply to selected premium cards.
Fuel Transaction Charges
A 1% fee will be charged on fuel expenses exceeding the prescribed limit per statement cycle. This does not apply to IndianOil Kotak Card and other premium cards.
