Kotak Mahindra Bank has announced a series of important changes for its Royal Signature Credit Card holders. These new terms and conditions will come into effect from June 1, 2025. If you own this card, it’s essential to understand how your spending, rewards, and benefits will be impacted going forward.
Here’s a detailed look at the changes you need to know.
Benefits That Will ContinueDespite the updates, some benefits of the Royal Signature Credit Card will remain intact:
You will continue to earn 4 reward points for every ₹150 spent.
Free access to domestic airport lounges twice every quarter will still be available.
Fuel surcharge waivers and railway ticket booking surcharge waivers will also remain applicable.
These unchanged benefits ensure that cardholders can still enjoy significant perks on their regular spending.
New Restrictions on Fuel ExpensesA key change relates to fuel purchases:
The 1% fuel surcharge waiver will now only apply on transactions between ₹500 and ₹5,000.
Additionally, the maximum annual fuel surcharge waiver has been capped at ₹3,500.
This means you’ll need to monitor your fuel expenses closely to maximize your savings.
Revised Limits on Earning Reward PointsKotak Mahindra Bank has introduced spending caps for earning reward points in specific categories:
For education and insurance payments, reward points will be granted only up to a spend of ₹70,000 per statement cycle.
For utility bill payments, points will be earned only up to ₹50,000 per statement cycle.
For government-related payments, the points earning cap has been set at ₹40,000.
Certain types of spending will no longer qualify for reward points:
Wallet recharges
Rent payments
Fuel purchases
Online gaming expenses
Moreover, these transactions will not be counted toward milestone benefits, reducing the potential for bonus rewards.
Decrease in Reward Point ValueAnother significant update is the reduction in reward point value:
Earlier, each reward point was worth ₹0.25.
Now, each point will be worth ₹0.20.
Additionally, you will need to accumulate at least 2,000 reward points before you can redeem them for cash, making redemptions slightly harder.
Stricter Lounge Access CriteriaFrom June 1 onward, free lounge access will be linked to your spending:
You must spend a minimum of ₹75,000 in the preceding quarter to qualify for free lounge access in the next quarter.
This change emphasizes the need for higher spending to maintain travel benefits.
Increase in Interest Rates and New Transaction ChargesCardholders should also note a hike in financial charges:
The interest rate will rise from 3.5% to 3.75% per month.
A 1% transaction fee will now apply to:
Wallet recharges
Online gaming expenses
Government transactions exceeding ₹10,000
Utility bill payments over ₹50,000
Fuel expenses beyond ₹35,000
Paying school or college fees via third-party apps such as PhonePe, CRED, or Mobikwik will attract a 1% fee.
However, if you make payments directly through the institution’s website or payment machines, no additional charge will apply.
If your auto-debit EMI linked to the card fails, a penalty of 2% on the total outstanding amount will be charged:
The penalty will be a minimum of ₹450 and a maximum of ₹5,000.
This makes it important to ensure sufficient balance in your account to avoid extra charges.
Final TakeawayThe upcoming changes to the Kotak Royal Signature Credit Card reflect a shift toward stricter reward and benefit structures. While some key benefits remain, spending limits, reduced reward point value, and new fees mean that cardholders need to plan their expenses carefully to continue getting the most out of their card.
If you’re a Kotak Royal Signature Credit Card holder, review these new rules thoroughly and adjust your spending habits accordingly before June 1, 2025, to maximize your rewards and avoid unexpected charges.
