Starting from December 2025, Kotak Mahindra Bank will introduce a new policy for transaction SMS alerts, where customers will be charged Rs 0.15 per SMS after the first 30 free alerts per month. The bank cites rising operational costs as the reason for this move. The free limit of 30 SMS alerts per month will apply to various transactions such as deposits, withdrawals, UPI transfers, and debit card payments.
To avoid these charges, customers can maintain a minimum balance in their accounts. For regular savings or salary accounts, a combined balance of Rs 10,000 or more, including monthly average balance and term deposits, will exempt customers from SMS fees. For Kotak 811 accounts, a lower threshold of Rs 5,000 applies. Additionally, customers who receive regular salary credits into their accounts will also be exempt from these charges.
In a separate development, Kotak Mahindra Bank has revised the annual and issuance fees for select debit cards, effective November 1, 2025. The fees for the Privy League Black Metal Debit Card and the Privy League LED Debit Card have been reduced from Rs 5,000 and Rs 2,500 to Rs 1,500 per annum, respectively. This move aims to make premium cards more accessible to customers while offering enhanced lifestyle and travel benefits.
The new SMS charge policy encourages customers to maintain adequate balances in their accounts and consider switching to digital notification channels such as email or in-app alerts, which will be free of charge. The bank aims to offset the communication and maintenance expenses associated with the alert infrastructure through these charges. Overall, the changes are intended to ensure that customers continue receiving timely transaction notifications while allowing the bank to manage its operational costs effectively.