Kotak Mahindra Bank has announced that it will start charging customers for SMS notifications related to their accounts, effective from December 2025. The bank will charge Rs 0.15 per SMS, with a free limit of 30 alerts per month. This charge will apply to various transactions, including UPI/NEFT/RTGS/IMPS transfers, ATM withdrawals, cash transactions, cheque deposits, and debit and credit card usage. The charge will be applicable to both salary and savings accounts.
However, some categories of customers will be exempt from these fees, including private banking clients, non-resident account holders, and a few other specific groups. Additionally, customers who maintain a combined balance of at least Rs 10,000 across their savings or salary accounts will not be subject to the charge. The calculation will take into account the monthly average balance and any term deposits held with the bank.
The bank has clarified that customers who meet the minimum balance requirement or receive regular salary credits will not incur any charges. This means that customers who use their accounts regularly and maintain a minimum balance will not have to pay for SMS notifications. The bank has stated that this measure is intended to ensure that customers continue to enjoy its services without incurring extra costs.
It’s worth noting that the charge is relatively small, at Rs 0.15 per SMS, and the free limit of 30 alerts per month is likely to cover most customers’ needs. However, customers who exceed this limit or do not meet the minimum balance requirement will need to be mindful of the additional charge. Overall, the bank’s move is likely aimed at encouraging customers to maintain a minimum balance and use digital channels for account updates, rather than relying on SMS notifications.