Starting June 1, 2025, Kotak Mahindra Bank will introduce a revised fee structure affecting select credit cardholders who spend heavily on fuel. According to the bank's latest announcement, if your monthly fuel expenses cross a pre-defined threshold, an additional 1% charge will be applied to the transaction. This move is part of a broader update in the bank’s fuel surcharge and waiver policies for its credit card users.
New Fee for High Fuel Spenders
Kotak Mahindra Bank will impose this new 1% charge only on certain credit cards where fuel spending exceeds the specified limits. For many users, this could mean re-evaluating their monthly fuel expenses, especially if they rely on their credit cards for frequent refueling.
The bank has categorized its credit cards based on spending thresholds:
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For White Signature, Privy League Signature, and Kotak IndiGo 6E XL Rewards cardholders, the monthly fuel spend limit is ₹50,000.
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For users of cards like Mojo Platinum, Zen Signature, Royale Kotak Signature, PVR INOX, 6E Rewards IndiGo Kotak, Kotak BIZ, and NRI Royale Signature, the limit is set at ₹35,000.
Any spending beyond these limits will now attract a 1% fuel surcharge, effective from the beginning of June.
Premium Cards Exempted
The good news is that not all cardholders will be affected. Kotak Mahindra Bank has excluded several premium and co-branded cards from this additional charge. These include:
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White Reserve
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Kotak Solitaire
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Kotak Infinite
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Kotak Signature
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IndianOil Kotak Credit Card
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Myntra Kotak Credit Card
Holders of these cards will continue to enjoy fuel transactions without any extra fee, even if they exceed the usual limits.
Key Changes in Fuel Surcharge Waiver Terms
Apart from introducing the new 1% surcharge, Kotak Mahindra Bank has also revised its existing fuel surcharge waiver policies. These updates will also take effect from June 1, 2025, and will vary depending on the specific credit card held by the customer.
Here’s a quick overview of the updated limits and maximum annual waiver allowed for various cards:
| Card Type | Previous Fuel Transaction Range | Max Waiver/Year | Revised Fuel Transaction Range | Max Waiver/Year |
|---|---|---|---|---|
| Kotak Solitaire | ₹400 – ₹7,500 | ₹10,000 | ₹400 – ₹7,500 | ₹10,000 |
| White Reserve, Kotak Infinite | ₹400 – ₹4,000 | ₹4,500 | ₹400 – ₹7,500 | ₹4,500 |
| White Credit Card | ₹500 – ₹3,000 | ₹3,500 | ₹400 – ₹7,500 | ₹4,500 |
| Privy League Signature (Free) | ₹400 – ₹4,000 | ₹4,500 | ₹400 – ₹7,500 | ₹4,500 |
| Privy League Signature (Paid) | ₹400 – ₹4,000 | ₹300/month | ₹400 – ₹7,500 | ₹300/month |
| Mojo Platinum, Zen Signature, Royale Signature, NRI Signature, Kotak Signature | ₹500 – ₹3,000 | ₹3,500 | ₹500 – ₹5,000 | ₹3,500 |
| League Platinum, 811 #Dream Different, Kotak 811 | ₹500 – ₹3,000 | ₹3,500 | ₹500 – ₹4,000 | ₹3,500 |
| Indian Oil Kotak (IOCL only) | ₹100 – ₹5,000 | ₹100/statement cycle | ₹100 – ₹5,000 | ₹100/statement cycle |
| Delight Platinum | ₹400 – ₹4,000 | ₹4,500 | ₹400 – ₹4,000 | ₹4,500 |
| Kotak BIZ | ₹500 – ₹3,000 | ₹2,500 | ₹500 – ₹5,000 | ₹2,500 |
| Myntra Kotak Credit Card | ₹500 – ₹3,000 | ₹3,500 | ₹500 – ₹3,000 | ₹3,500 |
| Veer Platinum, Veer Select, Fortune | ₹500 – ₹3,000 | ₹3,500 | ₹500 – ₹3,000 | ₹3,500 |
What Cardholders Should Do
Cardholders are advised to review the updated fuel transaction limits and associated waivers, especially if they frequently use their Kotak credit cards for fuel purchases. The revised conditions will impact the amount that can be transacted without incurring extra fees.
To avoid surprises on your billing statement, it’s best to check the specific terms related to your card either via Kotak’s official website or the mobile banking app. This will help you make informed decisions about whether to continue using your Kotak card for fuel or consider alternatives.
Final Thoughts
As banks increasingly look to streamline their reward and waiver structures, Kotak Mahindra Bank’s move indicates a focus on controlling operational costs and incentivizing premium card usage. For consumers, staying informed and understanding the fine print becomes more important than ever.
