Kotak Mahindra Bank Credit Card Payments through UPI

Last Updated : May 13, 2025, 5:15 p.m.

This article explores in detail about Kotak Mahindra Credit Card Payments through UPI. The unification of credit cards and UPI represents a significant milestone in India’s digital payment ecosystem. Kotak Mahindra Bank has been at the forefront of this innovation, offering customers the convenience of making credit card payments through UPI, eliminating the need to carry physical cards or remember multiple PINs. The Unified Payments Interface (UPI) has revolutionized how Indians transfer money and make payments. By extending this functionality to credit cards, Kotak Mahindra Bank has created a seamless experience that combines the benefits of credit cards with the ease and widespread acceptance of UPI.

Step-by-Step Guide to Making Kotak Mahindra Bank Credit Card Payments through UPI

Setting Up Your Kotak Credit Card for UPI Payments

1. Download and Log In : Access the Kotak Mobile Banking App and log in using your credentials.
2. Navigate to the Credit Card Section : Go to the “Credit Card” section in the app.
3. Access Card Overview : Find your card details under the “Card Overview” section.
4. Enable Online Transactions : To use your card for e-commerce or international transactions, click on “Card Control” under the “Card Overview” section.

Linking Your Credit Card to UPI

1. Open Your Preferred UPI App : Launch any UPI-enabled payment app (like BHIM, Google Pay, PhonePe, or Paytm).
2. Add New Payment Method : Look for the option to add a new payment method or card.
3. Select Credit Card : Choose the credit card option and select Kotak Mahindra Bank.
4. Enter Card Details : Provide your card details as requested.
5. Complete Verification : Follow the verification process, which may include OTP validation.
6. Create an UPI PIN : Create a UPI PIN for authenticating transactions.

Making Payments Using Your Linked Card

1. Launch the UPI App : Open the UPI app of your choice.
2. Select Kotak Credit Card : Choose your linked Kotak credit card as the payment method.
3. Enter Payment Details : Specify the recipient and amount.
4. Authorize with UPI PIN : Enter your UPI PIN to complete the transaction.

Paying Your Credit Card Bills Through UPI

1. Open UPI App : Launch your UPI-enabled payment app.
2. Select Bill Payment : Navigate to the section on bill payments
3. Choose Credit Card : Select the credit card bill payment option.
4. Choose the bank: Opt for Kotak Mahindra Bank.
5. Enter Card Details : Input your credit card number and other required information.
6. Specify Amount : Enter the payment amount.
7. Complete Payment : Authenticate the transaction with your UPI PIN.

Tips for Maintaining a Good CIBIL Score Through UPI Payments

1. Set Up Payment Reminders : Use your UPI app or banking app to set up payment reminders before due dates.
2. Pay More Than the Minimum Due : Always try to pay the full amount rather than just the minimum due to avoid interest charges and improve your credit score.
3. Monitor Your Credit Report Regularly : Check your credit report periodically to ensure all payments are correctly recorded.
4. Avoid Multiple Credit Inquiries : Limit new credit applications as they can temporarily lower your score.
5. Maintain a Diverse Credit Mix : Having different types of credit (credit cards, loans) managed responsibly can positively impact your score.

Benefits of Kotak Mahindra Bank Credit Card Payments through UPI

Paying your bills through UPI for Kotak Mahindra Bank credit cards has multiple advantages.

Convenience and Accessibility

Making credit card bill payments through UPI offers unparalleled convenience. You can manage your payments anytime, anywhere, using just your smartphone and UPI-enabled app.

Enhanced Security

UPI transactions are secured with multiple layers of authentication, including your UPI PIN, making credit card payments safer and reducing the risk of fraud.

Wider Acceptance

UPI is accepted by millions of merchants across India, from small local vendors to large e-commerce platforms, expanding the usability of your Kotak Mahindra credit card.

Instant Payments

UPI enables real-time credit card bill payments, helping you avoid late payment fees and potential negative impacts on your CIBIL score .

Reward Benefits

Kotak Mahindra Bank offers reward points for certain transactions made using their credit cards through UPI, allowing you to maximize the benefits of your card usage.

Recent Updates and Changes for Kotak Mahindra Bank Credit Card Payments through UPI

Revised Finance Charges and Fees (Effective June 1, 2025)

Kotak Mahindra Bank has announced significant changes to its credit card program, including revised finance charges. For the Kotak UPI RuPay Virtual Credit Card, the interest rate will increase from 3.50% per month (42% per annum) to 3.75% per month (45% per annum).

Transaction Fee Updates

A transaction fee of 1% will be imposed on specific categories:

• Rent payments
• Utility spends (above thresholds varying by card type)
• Education payments
• Wallet loading (above Rs. 10,000 in a statement cycle)
• Online skill-based gaming (above Rs. 10,000 in a statement cycle)
• Fuel transactions (above thresholds varying by card type)

Minimum Amount Due Revision

The minimum amount due will be revised to 1% of the total outstanding or 100% of EMIs plus other fees and charges (minimum of Rs. 100 or up to the Total Amount Due, whichever is lower).

UPI Transaction ID Standardization

The National Payments Corporation of India (NPCI) has made it compulsory that only alphanumeric characters must be used in UPI transaction IDs. Special characters are no longer permitted as of February 1, 2025. This standardization affects all UPI transactions, including those involving credit cards .

Kotak UPI RuPay Virtual Credit Card

The Kotak UPI RuPay Virtual Credit Card is one of the bank’s most innovative offerings. This lifetime free card comes with zero joining and annual fees, making it an attractive option for users looking to integrate credit card functionality with UPI convenience.

Key Features:

• Virtual-Only Card: The card is issued virtually, with no physical card, and is automatically registered in the Kotak Mobile Banking App.

• Reward Points: Earn 3 reward points for every Rs. 100 spent (excluding specific categories like rent, fuel, railway, wallet loading, EMI, education, and balance transfer).

• UPI Integration: Link your card on UPI apps and set a UPI PIN for making UPI transactions.

• Lifetime Free: No joining or annual fees ever.

Conclusion

By integrating credit card functionality with UPI, Kotak Mahindra Bank has significantly enhanced the convenience and flexibility of making credit card payments. Making Kotak Mahindra Bank credit card payments through UPI is easy and also helps users maintain good credit health through timely payments, directly impacting their CIBIL scores positively. As digital payment systems continue to evolve, the synergy between credit cards and UPI represents a pivotal advancement in India’s journey toward a cashless economy.