Credit Card Rules Change: This bank changed credit card rules, will be applicable from June 1

Kotak Mahindra Bank: Kotak Mahindra Bank has made some major changes in the terms and benefits of its Royal Signature Credit Card. These changes will come into effect from June 1, 2025. If you have this card, then know that now the ways of spending, getting rewards and using the benefits are going to change

Kotak Mahindra Bank: Kotak Mahindra Bank has made some major changes in the rules and benefits of its Royal Signature Credit Card. These changes will come into effect from June 1, 2025. If you have this card, then know that now the ways of spending, getting rewards and using the benefits are going to change.

You will still get these benefits

You will continue to get 4 reward points for every Rs 150 spent. Apart from this, you will also get the benefit of free use of domestic airport lounge twice every quarter. Facilities like surcharge waiver on fuel and railway ticket booking will also continue.

Limit imposed on fuel expenses

Now only 1 percent surcharge discount will be given on fuel expenses ranging from Rs 500 to Rs 5000. You will also be able to get a maximum discount of up to Rs 3500 in a year.

New limit for earning reward points

Now reward points will be available only on spending up to Rs 70 thousand in a statement cycle on education and insurance. Points will be available only on spending up to Rs 50 thousand on utility bills and Rs 40 thousand on government expenses.

Points will no longer be available on these expenses

No reward points will be given for adding money to the wallet, paying rent, buying fuel and spending on online games. Also, these expenses will no longer be counted in the milestone benefit.

Reward point value reduced

Now the value of each reward point has been reduced from 25 paise to 20 paise. To redeem in cash, it will be necessary to have at least 2000 points.

Lounge access will now be linked to expenses

Now you will get free airport lounge access only if you spend at least Rs 75,000 in the previous quarter. Only then will you get the benefit in the next quarter.

Interest rate and new charges also added

Now the interest rate on the card has increased from 3.5% to 3.75% per month. Along with this, 1% transaction fee will also be charged on many expenses – like putting money in the wallet, online gaming, government expenses of more than 10 thousand rupees, utility bills of more than 50 thousand and fuel expenses of more than 35 thousand.

Fees will also be charged on education fees

If you pay school or college fees through a third party app (like PhonePe, CRED or Mobikwik), then 1% charge will be levied. But if you pay directly from the school’s website or machine, then this charge will not be levied.

If auto debit fails, then you will have to pay a penalty

If the auto debit EMI of your card fails, then you will have to pay a penalty of 2% on the total outstanding amount. This charge can be at least Rs 450 and at most Rs 5000. So if you use this card, then plan your expenses keeping these new rules in mind.

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