Archive · 2 Jun 2025
Kotak Mahindra Bank Alters Debit and Credit Card Benefits
Kotak Mahindra Bank is changing some rules for its debit and credit cards.
Starting July 20, 2025, debit cards will no longer offer insurance benefits, like protection for lost luggage or accidental death.
Starting June 1, 2025, credit cards will have new limits on how many rewards you can earn in certain categories, such as spending on utilities or online gaming.
The value of reward points is also decreasing, and there will be fees for spending in certain categories.
Some fees, like interest rates, are increasing as well.
Kotak Mahindra Bank will discontinue insurance benefits on debit cards by July 20, 2025.
Changes to credit card rewards, fees, and charges begin June 1, 2025.
Reward earnings are limited across several spending categories.
Reward point redemption values are being reduced across different card types.
A 1% fee will be applied to certain transactions like rent and utility payments.
- Who
- Kotak Mahindra Bank and its debit and credit cardholders.
- What
- Kotak Mahindra Bank is discontinuing insurance benefits on debit cards and adjusting credit card rewards, fees, and charges.
- When
- Changes to credit card rewards, fees, and charges go into effect June 1, 2025. Insurance benefits on debit cards end July 20, 2025.
- Where
- The changes apply to Kotak Mahindra Bank debit and credit card holders.
- Why
- Kotak Mahindra Bank is making these changes to its debit and credit cards to adjust benefits and fees.
Consumers
Kotak Mahindra Bank
Changes to Benefits and Fees
Consumers
These changes reduce the value of the cards for consumers, leading to fewer benefits and increased costs.
Kotak Mahindra Bank
Adjusting card features to reflect evolving customer needs and market conditions. Fees are necessary to manage costs and provide services.
- Debit Card Insurance End Date
- July 20, 2025
- Credit Card Changes Effective Date
- June 1, 2025
- Lost Baggage Cover
- Up to ₹1 lakh (debit cards)
- Personal Accidental Death Cover
- Up to ₹15 lakh (debit cards, depending on card type)
- Purchase Protection
- Up to ₹1.5 lakh (debit cards)
- Interest Rate Increase
- From 3.50% p.m. (42% p.a.) to 3.75% p.m. (45% p.a.) for most cards
- Reward Point Redemption Reduction
- Varies by card type, e.g., Kotak Royale from ₹0.10 to ₹0.07 per point
