Kotak hikes fees — 1% on utility, fuel, wallet

Kotak Mahindra Bank has announced changes to its premium credit card offerings, effective June 1, 2025. The bank will now charge a 1% fee on utility transactions above ₹75,000, fuel transactions above ₹50,000, and wallet and gaming transactions above ₹10,000 per cycle. Additionally, a 2% DCC fee will be applied to international transactions on premium cards like White Reserve. The new fees will significantly impact heavy spenders who use their Kotak credit cards for utility, fuel, and wallet transactions. The 1% fee on transactions above certain limits will increase the cost of using these cards for large purchases. Furthermore, the introduction of a 2% DCC fee on premium cards will make international transactions more expensive. Our take: If you’re a heavy spender on utility, fuel, or wallet transactions, it’s time to reevaluate your credit card strategy. Consider alternative cards with more favorable fee structures or look into other payment methods to minimize the impact of these changes. For existing Kotak premium cardholders, it’s essential to review your spending habits and adjust your strategy to avoid incurring unnecessary fees.