Read,Digital Desk: Kotak Mahindra Bank: Significant modifications has been made in the honors and credit policy of Royal Signature Credit Card of Kotak Mahindra bank which will be effective from 1 June, 2025. In case you own this card, be informed that the methods of rewarding expenditures, enjoying benefits will change.

You will still get these benefits

For every increment of 150 RS spend, you will still earn 4 reward points. In addition, domestic airport lounge access will still be provided for free up to two times every quarter. Other benefits like conduit charge fuel and railway ticket booking will also remain unchanged.

Restriction imposed on Fuel Expenses

Now, there will be only a 1% charge discount on fuel costs ranging from 500 RS to 5000 RS. Also, you can expect a maximum discount of 3500 RS per year.

New Cap set for earning reward points

Reward points will only be offered to education and insurance expenses capped at 70,000 RS in a statement cycle. For utility bills, points will only be available for up to 50,000 RS worth spending, and for government expenses, up to 40,000 RS worth spending.

Points will no longer be available on these expenses

These set of expenses will not accrue points at all including increasing funds in the wallet, paying rent, buying fuel, and even spending on gaming. Moreover, these set of expenses will also not count towards the benefit milestones.

Reward points value has changed

Now all reward points will be set at a low value of 20 paise instead of the previous value of 25. It will now become mandatory to accrue a minimum of 2000 reward points to redeem them in cash.

Now lounge access will be tied to earning per quarter

Now it is only possible to earn the benefit of complimentary airport lounge access when there is a spend in the previous quarter that is equals to or exceeds Rs 75,000. They will only benefit from that in the following quarter.

New charges and interest rate are also added

There is now an increment in the interest rates from 3.5 percent to the new 3.75 percent per month, along with these other changes. As for the expenses, a 1 percent fee will apply on several charges like adding funds in the wallet, online gaming, spending over ten thousand rupees towards government services, fifty thousand rubles worth paying utilities, and thirty-five thousand rubles for fuel.

A fee will also be incurred on the educational fee payment

There is a 1% service charge for processing school or college payments via third-party applications like PhonePe, CRED, or Mobikwik. However, if payment is made using the school’s website or payment kiosk, this charge is waived.

Failure to auto debit will result in a penalty fee

Individual cardholders with an eligible card wi bound to pay 2% of the total outstanding balance if the auto debit EMI is missed. This penalty is bound to result in a minimum charge of Rs. 450 and a maximum charge of Rs. 5000. It’s advisable to limit expenses if you want to avoid paying additional fees using this card.

Read More: Kotak Mahindra Bank Royal Signature Credit Card: New Rules and Changes from June 1, 2025