Kotak Mahindra Bank has announced major changes in the charge structure for its credit card holders. These new rules will come into effect from June 1, 2025 and include charges on auto-debit failure, dynamic currency conversion (DCC), utility bill payment, education payment
Kotak Mahindra Bank has announced major changes in the charge structure for its credit card holders. These new rules will come into effect from June 1, 2025 and include charges on auto-debit failure, dynamic currency conversion (DCC), utility bill payment, education payment, wallet loading, online gaming, and fuel transactions. Also, the method of calculation of Minimum Amount Due (MAD) has been changed.
Charges on auto-debit failure
If payment fails through NACH, ECS or auto-debit, a 2% charge will be levied on the bounce amount, with a minimum of Rs 450 and a maximum of Rs 5,000.
Minimum Amount Due (MAD)
How MAD will be calculated from now on
- 1% on all purchases and cash transactions,
- Plus 100% EMI, finance charges, charges and taxes.
- MAD amount will be limited to 100 or Total Amount Due (TAD), whichever is lower.
- Dynamic Currency Conversion (DCC) Charge
- On transactions with foreign trade or foreign merchants.
- 3.5% charge will be levied on normal cards.
- 2% charge on Privy League Signature (Paid), White Reserve and Kotak Infinite cards.
This charge will be waived on Kotak Solitaire card.
Charges on utility bills
1% charge will be levied on utility bill payments above the prescribed limit in each statement cycle. This charge will not be applicable on White Reserve, Kotak Solitaire, Kotak Infinite, Kotak Signature and Myntra Kotak Credit Card.
Charges on education payments
1% charge will be levied on education related payments made through third party apps. The premium card holders mentioned above will not have to pay this charge.
Charges on wallet loading
1% charge will be levied on wallet loading above Rs 10,000 in each statement cycle. This charge will not be levied on some premium cards.
Charges on skill-based gaming
1% charge will be levied on skill-based online gaming transactions above Rs 10,000. This will also not be applicable on select cards.
Charges on fuel transactions
1% charge will be levied on fuel expenditure above the prescribed limit per cycle. This charge will not be applicable on IndianOil Kotak Card and other premium cards.
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