Kotak Mahindra Bank has announced that it will begin charging customers for SMS alerts related to transactions on Savings and Salary accounts starting December 2025. The bank will charge Rs 0.15 per SMS, with the first 30 alerts each month remaining free. This means that customers who exceed the free limit will be charged for each additional SMS alert. The charges will apply to notifications for various account activities, including transactions, ATM withdrawals, and debit or credit card transactions.
However, there are some exceptions to this rule. Customers who maintain a balance of Rs 10,000 (or Rs 5,000 for 811 accounts) will be exempt from the charges. Additionally, certain types of accounts, such as Private Banking Program, Solitaire Program, and 811 Super Savings Account, will not be subject to the charges.
Kotak Mahindra Bank is not the only bank to introduce such charges. Several other banks have also revised their SMS notification policies in recent months, citing operational costs and a shift towards app-based and email notifications. The bank has clarified that the fee is nominal, but it may still impact customers who rely heavily on text-based alerts.
It’s worth noting that the charges will only apply to customers who exceed the free limit of 30 SMS alerts per month. Customers who use mobile app notifications or email alerts will not be affected by the charges. The bank has also excluded certain types of accounts from the charges, including Non Resident Accounts, Salary Account for Uniformed Services, and Basic Savings Bank Deposit Account (Pradhan Mantri Jan Dhan Yojana).
The introduction of these charges may encourage customers to switch to mobile app notifications or email alerts, which are often more convenient and environmentally friendly. However, for customers who rely on SMS alerts, the charges may be a significant change. Kotak Mahindra Bank has stated that the charges will help the bank to manage its operational costs and provide better services to its customers. The charges will come into effect from December 2025, and customers are advised to check their account terms and conditions for more information.