If you hold a savings or salary account with Kotak Mahindra Bank, there are several important changes to banking charges starting April 1, 2026. The bank has revised debit card annual fees, ECS/NACH failure charges, cash transaction limits, and introduced a new third-party cash transaction fee.
1. Debit Card Annual Fee Increased
Kotak has revised the annual maintenance fee for some debit cards.
- Pay Shop More Debit Card
- Old fee: ₹259 per year
- New fee: ₹285 per year
This applies to customers who hold the debit card linked to eligible savings accounts.
2. ECS / NACH Failure Charges Revised
If an auto-debit transaction (such as loan EMI, bill payment, or standing instruction) fails due to insufficient balance:
- 1st failure: ₹500
- 2nd and subsequent failures: ₹550 per instance
Earlier, the charge was ₹500 per failure across all instances.
This applies to savings and corporate salary accounts.
3. Cash Transaction Limits Updated
For customers who do not maintain required balances under certain banking programmes:
- Only 3 cash transactions per month will be free
- Maximum ₹1,00,000 total cash transactions per month allowed without charges
Beyond these limits, applicable fees will apply as per the bank’s schedule.
4. New Third-Party Cash Transaction Fee Introduced
Kotak has introduced a new fee when someone else deposits or withdraws cash from your account.
- Free limit: Up to ₹25,000 per month
- Beyond ₹25,000:
- ₹5 per ₹1,000 transaction amount
- Minimum charge: ₹150 per transaction
This applies to third-party cash transactions at branches.
What This Means for Customers
These updates mainly impact customers who frequently use branch cash transactions or auto-debit payments.
Key things to watch:
- Keep sufficient balance to avoid ECS/NACH penalties
- Track monthly cash transactions if you rely on branch banking
- Review your debit card annual fee during renewal
Banks are increasingly encouraging digital payments and online banking, which often remain free or cheaper compared to branch-based services.