Kotak reprices premium cards — 4 months post ban lift

Kotak Mahindra Bank’s ten-month credit card issuance ban was lifted by the RBI on 12 February 2025. The ban, which was imposed due to IT governance failures, had frozen the bank’s card business since 24 April 2024. The lifting of the ban allowed Kotak to resume digital onboarding and issue new credit cards, including its premium offerings like the White Reserve. However, instead of offering generous terms, the bank chose to reprice its entire premium card portfolio within four months. Our take: Kotak’s decision to reprice its premium cards so soon after the ban lift suggests that the bank is prioritizing revenue growth over customer acquisition and retention. Ten months of frozen issuance cost the bank a book, and repricing the whole premium range within four months of getting it back is how it intends to earn that back — from existing holders. Read the revised schedule before your next renewal date, because the card you signed up for is not the card you are renewing. And price any new Kotak application on the new terms, not on reviews written before the ban.