Cardholders will face new limits on reward earnings across categories such as utility payments, education, wallet loading, fuel, rent, government spends, insurance, and online gaming. In many cases, no rewards or cashback will be provided after a certain spending threshold.
For instance, as per Paisabazaar, Kotak Privy League Signature card users will not earn benefits on:
- Utility spends above ₹75,000
- Education spends above ₹1 lakh
- Wallet loads above ₹10,000
- Government spends above ₹75,000
- Insurance spends above ₹1 lakh
- Online gaming spends above ₹15,000
- No rewards on fuel and rent payments
Other Kotak cards, including Mojo Platinum, Zen Signature, and Kotak 811, also face similar restrictions, with lower thresholds. Cards like Delight, Fortune, and 6E Rewards variants will not earn any rewards in these categories.
Kotak will also exclude these categories from milestone benefits, Paisabazaar said.
Reward point redemption value slashed
Redemption values of reward points have been reduced. For example:
- Kotak Royale, League, Urbane: from ₹0.10 to ₹0.07 per point
- Kotak 811 Credit Card: from ₹0.25 to ₹0.10 per point
- Kotak Infinite and NRI Royale Signature: from ₹1 to ₹0.70 per point
The revised values vary depending on the card type.
1% transaction fee on select categories
A 1% fee will apply on:
- Rent and education spends (regardless of amount)
- Utility, wallet loads, online gaming, and fuel (after crossing spend thresholds)
For example, for Kotak Privy League Signature, utility spends above ₹75,000 and fuel spends above ₹50,000 in a statement cycle will attract the fee. For others like Kotak 811, the fee applies above ₹35,000 (utility) and ₹25,000 (fuel).
Wallet loading and online gaming transactions above ₹10,000 per billing cycle will also incur the 1% fee, the Paisabazaar report said.
Fuel surcharge waiver thresholds increased
Fuel transaction thresholds for surcharge waivers have been revised. Notable changes include:
- Kotak White Reserve, Infinite, Privy League Signature: New cap at ₹7,500 per transaction
- Kotak White Credit Card: Annual cap increased from ₹3,500 to ₹4,500
Other cards see similar upward revisions in fuel waiver thresholds
Finance charges revised
Kotak has increased interest rates on many cards. For example:
- Most cards: From 3.50% p.m. (42% p.a.) to 3.75% p.m. (45% p.a.)
- Kotak Privy League Signature: From 2.49% p.m. to 3.50% p.m.
- Kotak Infinite, White Signature: From 3.10% p.m. to 3.50% p.m.
Other fee revisions
- Standing instruction failure fee: 2% of the amount, min ₹450, max ₹5,000
- Minimum amount due: 1% of total outstanding or 100% of EMIs and other charges (minimum ₹100)
Dynamic currency conversion fee
- 2% for White Reserve, Infinite, Privy League Signature
- 5% for all other cards
