In a surprising turn of events, Kotak Mahindra Bank has announced devaluations for its credit cards, just a month after the Reserve Bank of India lifted its ban on the bank’s credit card operations. These changes, set to take effect from 1st June 2025, will impact several popular cards, including the PVR Kotak Platinum, Zen Signature, Royale Signature, and UPI RuPay Credit Cards.
The devaluation means customers will see reduced rewards and increased fees across various spending categories. Key adjustments include changes to milestone benefits, higher transaction fees for certain expenditures, and a rise in interest rates from 3.5% to 3.75% per month. The cash redemption value for Reward Points has been reduced, affecting how cardholders can utilize their accumulated points.
This news is important for current and future Kotak credit card holders. It shows how credit card benefits are changing, and it is a good time for consumers to rethink their financial plans. Continue reading for a summary of what these changes mean for each card.
PVR Kotak Platinum Credit Card
The PVR Kotak Platinum Credit Card is being devalued from 1st June 2025. A lot of changes are being made to the card.
Milestone Benefits Adjustment
Certain categories, such as Utility, Education, Wallet Load, Rent, and Online Skill-Based Gaming, will no longer contribute to milestone benefits. This means spending in these areas won’t help you earn rewards or tickets.
Transaction Fee
A 1% transaction fee will apply based on your spending:
- Wallet Load and Online Gaming: Applies if you exceed ₹10,000.
- Fuel: If you exceed ₹25,000.
- Utilities: If your spending exceeds ₹35,000.
- Education: Transactions via third-party apps incur a fee, but direct payments to educational institutions do not.
Revised Interest Rates
The interest rates of the PVR Kotak Platinum Credit Card will increase from 3.5% to 3.75% per month.
Auto-Debit Failure Fee
There’s a new auto-debit failure fee of 2% on the outstanding amount, with a minimum fee of ₹450 and a maximum of ₹5,000.
Kotak Zen Signature Credit Card
Kotak Mahindra Bank is implementing changes to the Zen Signature Credit Card from 1st June 2025. The primary devaluations are as follows:
Increase in Interest Rates
The interest rates are rising from 3.5% to 3.75% per month.
Airport Lounge Access
Zen Credit Cardholders are required to spend ₹75,000 per calendar quarter for two complimentary domestic airport lounge visits.
Fuel Surcharge Waiver
- A 1% fuel surcharge waiver is applicable for transactions between ₹500 and ₹5,000.
- The maximum waiver is capped at ₹3,500 per year.
Adjustment in Reward Points
- Limiting Reward Points on various spends:
- Education and Insurance: Points up to ₹70,000 per statement cycle.
- Utility Spends: Limited to ₹50,000.
- Government Spends: Limited to ₹40,000.
- No points for wallet loads, fuel, rent, or online skill-based gaming.
- Cash value of points reduced from ₹0.25 to ₹0.20, with a minimum redemption requirement of 2,000 points.
Transaction Fees
A 1% fee applies to wallet loads, fuel, utilities, and education if spending exceeds the specified limits.
- Wallet Load/Online Gaming: If you spend more than ₹10,000 in a billing cycle.
- Fuel: If your total spending exceeds ₹35,000 in a billing cycle.
- Utility Bills: If you spend over ₹50,000 in a billing cycle.
- Education Payments: If you use third-party apps to pay (like PhonePe, Cred, Mobikwik, etc.).
Auto-Debit Charges
A fee of 2% of the outstanding amount for auto-debit failures, with a minimum amount of ₹400 and a maximum amount of ₹5,000.
Kotak Royale Signature Credit Card
The devaluation of the Kotak Royale Signature Credit Card has lowered the benefits it used to offer to its cardholders. The changes will take place from 1st June 2025.
Reward Points
- Earn up to 4 Reward Points for every ₹150 spent.
- Specific limits for earning:
- Education and insurance: Up to ₹70,000 per cycle.
- Utility payments: Up to ₹50,000.
- Government transactions: Up to ₹40,000.
- Discontinuation of rewards for wallet loads, rent payments, fuel transactions, and online gaming.
Interest Rates and Fees
- The interest rate has increased from 3.5% to 3.75% monthly.
- Introduction of a 1% transaction fee for specific high-value transactions.
Fuel Surcharge Waiver
- 1% waiver on fuel purchases between ₹500 and ₹5,000.
- Total fuel waiver is capped at ₹3,500 per year.
Airport Lounge Access
One complimentary visit to the domestic airport lounges upon spending ₹75,000 or more every quarter.
Cash Redemption Value
- Value for redeeming Reward Points reduced from ₹0.25 to ₹0.20.
- A minimum of 2,000 points is required to redeem for cash.
Auto-Debit Fee
New fee of 2% on failed auto-debits, minimum ₹450, maximum ₹5,000.
Kotak UPI RuPay Credit Card
The Kotak UPI RuPay Credit Card will offer fewer rewards and higher fees from 1st June 2025. Changes include reduced cash value for Reward Points and new transaction fees.
Reward Points
- Cardholders can earn Reward Points on utility bills upon spending up to ₹35,000 each month.
- No rewards for wallet loads, online skill-based gaming, insurance, government, fuel, rent, and education spending.
Increased Interest Rates
The monthly finance charge will rise from 3.5% to 3.75%.
Transaction Fees Introduced
A 1% transaction fee will apply to certain categories for spends exceeding specific limits:
- Wallet-load and online gaming: Over ₹10,000
- Fuel: Over ₹25,000
- Utility: Over ₹35,000
- Education: Applies to third-party apps only
Cash Value Reduction
- The cash redemption value for Reward Points will drop from ₹0.10 to ₹0.07 per point.
- A minimum of 2,000 Reward Points will now be needed for redemption.
Auto-Debit Fees
An auto-debit failure fee of 2% on the outstanding amount will be implemented, ranging from ₹450 to ₹5,000.
Bottom Line
The devaluation of Kotak Mahindra credit cards will impact its cardholders, leading to reduced rewards and increased fees. This change may push away current customers and make potential new users less likely to choose Kotak credit cards.
While this devaluation might help the bank to manage its operations better, it is not beneficial for current Kotak cardholders who rely on rewards and loyalty programs. As Kotak Mahindra continues to revise its offerings, there could be further changes in other Kotak credit cards, which may lead to more dissatisfaction among users.
This is a step back for customers, prompting them to explore alternative credit card options that offer better value.