This new revised rate will come into effect on August 1, 2026.
What Does This Rise Mean For Bank Users?
A Dynamic Currency Conversion or DCC is a fee that is applied when bank users carry out transactions at international merchants. This includes transactions that are made even within India, which are then processed by overseas merchants. This rise in the transaction fee will be applicable on all ATM, POS/in-store or online transactions.
Recent Bank Revisions
The banking sector has seen several lenders revising their rates in the recent past. Recently, Kolkata-based Bandhan Bank raised its FD interest rate to 7.95% for specific tenures.
Several other banks have also introduced different revisions and measures in other segments of their services in the recent past, with lenders including IDBI Bank, SBM Bank India, South Indian Bank, Union Bank of India and Equitas Small Finance Bank (SFB) having revised their Foreign Currency Non-Resident [FCNR(B)] deposit rates.
RBI Launches FCNR(B)
This step from the banking industry follows the introduction of the Reserve Bank of India’s (RBI) FCNR(B), which stands for Foreign Currency Non-Resident (Bank).
This scheme is a special financial scheme launched to attract foreign capital from Non-Resident Indians (NRIs).
What it does is to temporarily do away with the major costs and regulatory burdens that banks face while accepting these overseas deposits.
How Can You Avoid DCC
Furthermore, when it comes to Kotak Mahindra Bank’s recent DCC revision, customers can avoid paying the DCC fee by choosing to carry out transactions in the local currency of the merchant, wherever such an option is available. This will result in the said transaction not attracting DCC charges.
As for stock, the shares of Kotak Mahindra Bank closed in green this week, with gains of close to 3%.
The shares now stand at ₹409 per piece at the end of this week’s trading.
