Kotak Mahindra Bank has introduced a new fee structure for SMS alerts, effective immediately. The bank will charge customers Rs 0.15 for every SMS alert received after the first 30 SMS alerts per month. This move is intended to cover operational expenses, and the bank has assured customers that it remains committed to providing timely account information.
The fee will apply to various transactions, including UPI, NEFT, RTGS, and IMPS transfers, ATM withdrawals, cash transactions, cheque deposits, and use of debit or credit cards. However, customers with a balance of Rs 10,000 or more in their savings or salary account will be exempt from paying the fee for more than 30 monthly SMS alerts.
On a positive note, the bank has reduced the annual and issuance fees for some of its debit cards, effective November 1st. The annual fee for the Privy League Black Metal Debit Card has been reduced from Rs 5,000 to Rs 1,500, while the fee for the Privy League LED Debit Card has been reduced from Rs 2,500 to Rs 1,500.
The introduction of the SMS alert fee may be seen as a way for the bank to generate additional revenue and offset operational costs. However, the exemption for customers with a minimum balance of Rs 10,000 or more may help to mitigate the impact on regular customers. The reduction in debit card fees, on the other hand, is a welcome move that may help to attract and retain customers.
Overall, the changes to Kotak Mahindra Bank’s fee structure are likely to have a mixed impact on customers. While some may be affected by the new SMS alert fee, others may benefit from the reduced debit card fees. As with any change to banking fees, customers are advised to review their account terms and conditions to understand how they may be affected.