According to a report by The Economic Times, Kotak Mahindra Bank has introduced a new charge for customers who fail to maintain a minimum balance in their accounts. The bank will now charge Rs 0.15 per SMS for notifications sent to customers who do not meet the minimum balance requirement.
This move is seen as an attempt by the bank to encourage customers to maintain a minimum balance in their accounts, thereby avoiding the additional charge. The charge is applicable to all customers who have a savings account with Kotak Mahindra Bank and fail to maintain the minimum balance specified by the bank.
The minimum balance requirement varies depending on the type of account and the location of the branch. For example, customers with a savings account in a metro branch are required to maintain a minimum balance of Rs 10,000, while those in non-metro branches need to maintain a minimum balance of Rs 5,000.
If a customer fails to maintain the minimum balance, the bank will send an SMS notification, and the customer will be charged Rs 0.15 per SMS. This charge will be debited from the customer’s account, and the customer will be notified about the charge through another SMS.
The introduction of this charge has raised concerns among customers, who feel that it is an additional burden on them. Some customers have expressed dissatisfaction with the bank’s decision, stating that it is unfair to charge them for not maintaining a minimum balance.
Kotak Mahindra Bank has defended its decision, stating that the charge is intended to encourage customers to maintain a minimum balance in their accounts. The bank has also stated that the charge is a nominal one and will not have a significant impact on customers.
It is worth noting that other banks in India also have minimum balance requirements and charge customers for not maintaining them. However, the charge per SMS is a new development and may be seen as an attempt by Kotak Mahindra Bank to differentiate itself from its competitors.
Overall, the introduction of the Rs 0.15 per SMS charge by Kotak Mahindra Bank is seen as a move to encourage customers to maintain a minimum balance in their accounts. While some customers may view this as an additional burden, the bank sees it as a way to promote responsible banking habits.