Kotak Mahindra Bank to Update Credit Card Charges from June 1, 2025

Starting June 1, 2025, Kotak Mahindra Bank will roll out significant changes to its credit card fee structure, impacting a wide range of transactions. The updates cover utility payments, wallet top-ups, fuel purchases, online gaming, and more. Additionally, there will be a new method for calculating the Minimum Amount Due (MAD) on card statements, which could influence how customers plan their repayments.

Key Highlights of the Revised Credit Card Fee Structure

Penalties for Standing Instruction Failures

Kotak will impose stricter penalties for failed standing instructions such as Auto Debit returns via NACH, ECS, or Auto Debit. A fee of 2% of the failed transaction amount will be charged, with a minimum of ₹450 and a maximum cap of ₹5,000. This is aimed at reducing payment defaults and improving billing discipline.

Changes in Dynamic Currency Conversion (DCC) Fees

New DCC Charges on International Transactions

Cardholders making payments in foreign currencies will now incur a Dynamic Currency Conversion (DCC) fee of 3.5% across most Kotak credit cards. However, premium cardholders enjoy concessions:

• Privy League Signature (Paid Variant), White Reserve, and Kotak Infinite cards: 2% DCC fee

• Kotak Solitaire cardholders: No DCC fee

These revisions are designed to encourage usage of premium cards for international spending.

Revised Minimum Amount Due (MAD) Calculation

New MAD Formula to Affect Repayment Patterns

Kotak will implement a new MAD calculation method from June 1:

• 1% of all purchases and cash advances

• 100% of EMIs, interest charges, applicable fees, and taxes

The MAD will now offer a clearer picture of monthly dues and appear in the statement summary section. This change could impact cardholders' minimum payment behavior and interest accrual.

Transaction-Based Charges: New Fees on Specific Spends

Utility Bill Payments

If your total utility payments exceed a set limit in a billing cycle, a 1% fee will apply. This fee is waived for:

• White Reserve

• Kotak Solitaire

• Kotak Infinite

• Kotak Signature

• Myntra Kotak cardholders

Wallet Reloads, Online Gaming & Education Payments

Charges will apply to the following categories if monthly spends exceed ₹10,000:

• Wallet Top-Ups

• Online Skill-Based Gaming

• Education Fee Payments

• Fuel Transactions

A 1% fee will be imposed above the threshold, except for holders of premium cards mentioned above.

Kotak’s Strategy: Tiered Benefits Based on Card Type

The fee revisions reflect Kotak Mahindra Bank’s approach of offering tiered benefits based on the customer’s credit card variant. While mainstream users face additional charges, premium cardholders will continue to enjoy lower or waived fees, encouraging card upgrades and long-term loyalty.

What Cardholders Should Do Next

Customers are advised to:

• Review their monthly transaction patterns

• Understand how new fees may affect them

• Check eligibility for premium card upgrades

• Set up reminders to avoid auto-debit failures

Keeping track of billing cycles, spending limits, and category-specific charges will be crucial to avoiding unnecessary penalties.

Conclusion

The upcoming changes to Kotak Mahindra Bank’s credit card fees, effective from June 1, 2025, mark a comprehensive restructuring across transaction categories and billing processes. While some may face added costs, others may benefit from reduced charges depending on their card type. Staying informed and adapting to these changes will help cardholders manage their credit more efficiently.