Kotak Mahindra Bank has introduced important changes to the fee structure for its credit card users.
These updated charges will apply from June 1, 2025, and will affect payments made through auto-debit, foreign currency transactions (DCC), utility and education bill payments, wallet top-ups, online gaming, and fuel transactions.
The way the Minimum Amount Due (MAD) is calculated has also been updated.
Charges for Auto-Debit Failures
If an auto-debit payment fails through NACH, ECS, or any auto-debit method, a fee of 2% will be charged on the bounced amount. This charge will be a minimum of Rs 450 and a maximum of Rs 5,000.
New Method to Calculate Minimum Amount Due (MAD)
Here’s how MAD will be calculated now:
1% of the total purchases and cash withdrawals.
Plus 100% of EMIs, including finance charges, other fees, and taxes.
The MAD will not exceed the lower of Rs 100 or the Total Amount Due (TAD).
Dynamic Currency Conversion (DCC) Charges
For international purchases or payments to foreign merchants:
A 3.5% fee will apply to regular cards.
A 2% fee will apply to Privy League Signature (Paid), White Reserve, and Kotak Infinite cards.
No DCC fee on Kotak Solitaire card.
Charges on Utility Bill Payments
A 1% fee will be charged on utility bill payments above a set limit per billing cycle. This charge does not apply to 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 through third-party apps. Premium cardholders mentioned earlier will not be charged this fee.
Charges on Wallet Top-Ups
A 1% charge will apply when wallet loads exceed Rs 10,000 per statement cycle. This fee is waived for certain premium cards.
Charges on Online Skill-Based Gaming
A 1% charge will apply on skill-based online gaming transactions above Rs 10,000 per cycle. This charge will not apply to select premium cards.
Charges on Fuel Transactions
A 1% fee will be applied to fuel spending above the specified limit per billing cycle. This does not apply to IndianOil Kotak Card and other premium credit cards.
