Consumer Basant Panwar accuses Kotak Mahindra Bank of unfair credit card charges, high interest rates, and policy violations. Read the full complaint, details, and learn how Choice4Voice.com helps consumers fight back.
Complaint Summary Table : Kotak Mahindra Bank Credit Card Interest Scam – Basant Panwar Complaint Goes Viral
| Detail | Information |
|---|---|
| Complainant Name | Basant Panwar |
| Bank Involved | Kotak Mahindra Bank |
| Issue Type | Credit Card Charges & High ROI |
| Complaint Summary | Despite paying 3X the minimum due (₹40,000), bank charged interest on the entire outstanding (₹1.90L), not the balance amount (₹1.60L). Around ₹14,000 charged as interest in 30 days. |
| Claimed ROI | Approx. 6.5% monthly interest |
| Action Requested | RBI intervention & fair policy implementation |
| Original Source | View Original LinkedIn Post |
Full Complaint Details
Basant Panwar, a long-time customer of Kotak Mahindra Bank, has raised a serious allegation against the bank’s credit card policies and interest charges.
He states that despite being a loyal customer and consistently paying bills on time for six years, he faced exorbitant and unfair charges after being unable to pay his full outstanding amount of ₹1.90 lakh due to personal family issues.
- He managed to pay ₹40,000, which is more than 3X the minimum due amount.
- However, the bank charged interest on the entire outstanding (₹1.90L) instead of the remaining balance (₹1.60L).
- Shockingly, this resulted in ₹14,000 interest charges in just 30 days, translating to an effective ROI of 6.5% monthly.
Basant alleges this is against Kotak’s stated policy and amounts to unfair banking practice. He has publicly urged the Reserve Bank of India (RBI) to take immediate action.
Brand Involved: Kotak Mahindra Bank
Kotak Mahindra Bank, one of India’s leading private sector banks, offers a wide range of financial services including credit cards. However, customer complaints about high interest rates, hidden charges, and poor grievance redressal have been surfacing frequently online.
This case raises questions about:
- Transparency in credit card billing policies
- Excessive interest charges
- Whether banks follow RBI guidelines on minimum due payments
About the Author: Basant Panwar
The complaint was shared publicly by Basant Panwar on LinkedIn, where he expressed his frustration over Kotak’s handling of the issue. His post has attracted attention from other consumers who also shared similar negative experiences with credit card services.
View Basant Panwar’s Original LinkedIn Post
Choice4Voice.com – Helping Consumers Raise Their Voice
At Choice4Voice.com, we believe no consumer should be ignored. Many customers, like Basant Panwar, face unfair banking practices and struggle to get proper responses from banks.
Here’s how we help:
- We publish genuine complaints to ensure companies take notice.
- We amplify consumer issues on Google and LinkedIn, pressuring brands to act.
- We assist people in reaching the right authorities like RBI, IRDAI, etc.
👉 If you are facing a similar issue with your bank, submit your complaint directly here:
🔗 Submit Your Complaint to Choice4Voice.com
Or tag our official Choice4Voice LinkedIn page in your posts for maximum visibility.
Consumer Q&A – Kotak Mahindra Bank Credit Card Issues
Q1: Why am I charged interest even after paying more than the minimum due on my Kotak credit card?
Banks often charge interest on the full outstanding if the entire bill is not cleared, but RBI rules mandate clear disclosure. Consumers can dispute unfair charges.
Q2: What is the interest rate charged by Kotak Mahindra Bank on credit cards?
Kotak’s credit card interest can go as high as 3.5% per month (42% annually), but in this case, the effective charge was 6.5% monthly, raising concerns.
Q3: Can Kotak charge interest on the full outstanding when part payment is made?
As per policy, interest is generally charged on the remaining balance, not the entire amount. If interest is applied incorrectly, it should be disputed.
Q4: How do I escalate a complaint against Kotak Mahindra Bank?
Consumers can approach:
- Kotak Grievance Redressal Cell
- Banking Ombudsman (RBI)
- Platforms like Choice4Voice.com for visibility
Q5: What is the minimum due trap in credit cards?
Paying only the minimum due keeps the account active but leads to high interest charges on the remaining balance. This is often seen as a debt trap.
Q6: What are RBI guidelines for unfair credit card charges?
RBI mandates transparent billing, disclosure of interest rates, and a fair grievance redressal mechanism. Unfair practices can be reported.
Q7: Can I take legal action against a bank for unfair credit card interest?
Yes, consumers can file a case in consumer court if the bank fails to resolve disputes.
Q8: How can I avoid paying high credit card interest?
- Always clear full dues on time
- Track billing cycles
- Avoid revolving balances
Q9: Why do banks charge 40%+ annual interest on credit cards?
This high interest compensates for unsecured lending risk, but many argue it is exploitative and needs RBI intervention.
Q10: Where can I share my Kotak Mahindra Bank complaint publicly?
You can post on LinkedIn, file a grievance with RBI, and submit to Choice4Voice.com for maximum exposure.
