Kotak Mahindra Bank has announced significant changes to its Royal Signature Credit Card terms and benefits.
These updates will take effect from June 1, 2025. If you hold this card, be prepared for changes in how you spend, earn rewards, and use the card’s benefits.
Ongoing Benefits
Reward Points: You will still earn 4 reward points for every Rs 150 spent.
Airport Lounge Access: You can use domestic airport lounges for free twice each quarter.
Other Benefits: The surcharge waiver on fuel and railway ticket bookings will remain unchanged.
New Fuel Spending Limits
You will now get a 1% surcharge discount only on fuel purchases between Rs 500 and Rs 5000.
The maximum discount you can receive on fuel purchases will be capped at Rs 3500 per year.
New Reward Points Limits
You can now earn reward points on spending up to Rs 70,000 for education and insurance in one statement cycle.
You will earn points on up to Rs 50,000 for utility bills and Rs 40,000 for government expenses.
No Points for Certain Expenses
Reward points will no longer be earned on the following:
Adding money to wallets
Paying rent
Buying fuel
Spending on online games
These will also not count toward milestone benefits.
Reduced Value of Reward Points
The value of each reward point will decrease from 25 paise to 20 paise.
To redeem reward points for cash, you will need a minimum of 2000 points.
Lounge Access Linked to Spending
Free airport lounge access will now be available only if you spend at least Rs 75,000 in the previous quarter. This spending will determine your eligibility for the next quarter.
Increased Interest Rates and New Charges
The monthly interest rate on the card will increase from 3.5% to 3.75%.
A 1% transaction fee will apply to:
Adding money to wallets
Online gaming
Government expenses over Rs 10,000
Utility bills over Rs 50,000
Fuel expenses over Rs 35,000
Fees for Education Payments
If you pay school or college fees through a third-party app (like PhonePe, CRED, or Mobikwik), a 1% fee will be charged.
Direct payments through the school’s website or machine will not incur this charge.
Penalty for Failed Auto Debit
If your auto debit EMI fails, you will incur a 2% penalty on the total outstanding amount, with a minimum charge of Rs 450 and a maximum of Rs 5000.
With these updates, make sure to plan your spending accordingly to avoid unexpected charges.
