Kotak Mahindra Bank Revises SMS Alert Charges from December 1: Who Gets Exempted
Kotak Mahindra Bank to Increase SMS Alert Charges from December: Check New Rules and Exemptions
Starting December 1, 2025, customers of Kotak Mahindra Bank will have to pay more for SMS alerts. The bank has announced a revision in its notification policy, introducing a nominal fee for SMS alerts beyond a set limit. While this change aims to manage rising operational costs, it will only impact customers who fail to maintain the required minimum balance in their accounts.
What Are the New SMS Charges?
Under the revised policy, the first 30 SMS alerts each month will be free of cost. After crossing this limit, customers will be charged ₹0.15 per SMS for every additional alert.
These SMS notifications include updates related to:
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UPI transactions
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ATM withdrawals
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Cash deposits
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Cheque clearances
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Card payments and other account-related activities
The change, effective from December 1, 2025, applies to both savings and current account holders who do not meet the minimum balance criteria set by the bank.
Why Has the Bank Increased the Charges?
Kotak Mahindra Bank stated that the revision is part of an effort to cover operational expenses and ensure the continued delivery of real-time transaction alerts. With millions of customers using SMS and mobile banking, the cost of message delivery has grown significantly.
The bank clarified that the decision will not affect customers who maintain the required average monthly balance, as they will continue receiving alerts free of cost.
Who Will Be Exempted from SMS Charges?
Kotak Mahindra Bank has specified clear exemption rules:
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Customers maintaining an average monthly balance of ₹10,000 or more in their savings or salary accounts will not be charged.
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Holders of Kotak 811 accounts will get a lower exemption threshold, requiring only ₹5,000 in average monthly balance.
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Customers with regular salary credits or active term deposits (FDs) linked to their accounts will also be exempt from SMS charges.
Essentially, the new fee will impact only those who do not meet balance or activity requirements.
Debit Card Fee Revisions Already Implemented
In addition to SMS alert charges, Kotak Mahindra Bank has already revised the annual fees on select debit cards, effective November 1, 2025.
Here’s the updated fee structure:
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Privy League Black Metal Debit Card: Annual fee reduced from ₹5,000 to ₹1,500
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Privy League LED Debit Card: Annual fee cut from ₹2,500 to ₹1,500
These revisions aim to make premium cards more affordable while aligning with the bank’s updated product pricing model.
What This Means for Customers
The upcoming SMS charge policy reflects a broader trend among private banks in India, where digital and mobile banking costs are being streamlined to balance service quality and operational expenses.
For most Kotak customers, the impact will be minimal — especially for those maintaining the required balances. However, those frequently making digital or ATM transactions while keeping low balances might see small additional deductions in their monthly statements.
How to Avoid SMS Alert Charges
To continue receiving SMS notifications without any extra cost, customers can:
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Maintain the required minimum average monthly balance (₹10,000 or ₹5,000 for 811 accounts).
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Link a fixed deposit (FD) or salary account with the primary account.
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Opt for email or app-based notifications instead of SMS alerts to reduce dependency on chargeable messages.
Final Takeaway
From December 1, 2025, Kotak Mahindra Bank customers should review their account balances and alert preferences to avoid unnecessary fees. While the new SMS charge is nominal, staying informed and maintaining the prescribed balance can ensure uninterrupted, free access to real-time banking alerts — helping customers stay secure and up-to-date with their financial transactions.
