Starting December 2025, Kotak Mahindra Bank will begin applying a nominal fee for SMS alerts on Savings and Salary accounts.
Customers will receive the first 30 SMS alerts per month for free, after which a small charge of Rs 0.15 per message will apply.
These SMS alerts include important updates such as UPI, NEFT, RTGS, IMPS transactions, ATM withdrawals, cheque clearances, card usage, and cash deposits — keeping customers informed about every activity in their account.
Who Gets a Waiver?
The bank has clarified that customers maintaining a minimum balance of Rs 10,000 in their Savings account, or Rs 5,000 in Kotak 811 accounts, will not have to pay these SMS charges.
This means only those with lower balances and frequent alerts may see a small deduction.
Kotak Mahindra Bank says the fee is nominal and reflects a growing shift toward mobile app and email notifications, which are free and more convenient.
Not Just Kotak — Other Banks Too
Kotak is not the only bank making this move.
Several other banks have already revised their SMS notification policies, citing operational costs and the increasing use of digital platforms.
Many are encouraging customers to rely on in-app notifications for real-time updates instead of traditional text messages.
However, not all accounts will be affected. The following account types will remain exempt from SMS alert charges:
811 Super Savings Account
Privy League (Neon, Platinum, Black)
Kotak Easy Savings Account
Salary Account for Uniformed or Public Services
Basic Savings Bank Deposit Account (Jan Dhan Yojana)
Pragathi Deposits
Retail Banking RERA Savings Account
Institutional Savings Accounts
Non-Resident Accounts and FCRA-linked Accounts
The Bottom Line
While the new rule may slightly affect customers who prefer SMS updates, it’s part of a broader trend in banking — a shift toward digital, app-based communication.
For most users, switching to mobile notifications or maintaining the minimum balance will help avoid these charges altogether.
