Kotak Mahindra Bank is updating its SMS alert charges, a move that is expected to impact a broad spectrum of its customer base starting in 2025. While the RBI permits banks to levy nominal fees for such services, Kotak’s revised structure introduces a usage-based model that has significant implications for daily banking.
Read on to learn more about the new charges, who they affect, and actionable strategies to manage or altogether avoid these new costs. Understanding these changes is crucial for proactive account management and maintaining financial transparency.
What Kotak’s New SMS Alert Charges Are
Effective from December 2025, Kotak Mahindra Bank will implement a new, usage-based fee structure for its SMS alert services. Customers will receive 30 free SMS alerts each month. Any alerts exceeding this quota will be charged at a rate of ₹0.15 per message.
However, it is important to note that critical communications, including One-Time Passwords (OTPs) and other mandatory security messages, are exempt from these charges and will continue to be free. Promotional texts sent by the bank are also excluded from the chargeable count.
The details of this new structure are summarised in the table below:
| Feature | Details |
| Free SMS Quota | 30 SMS alerts per month |
| Charge per SMS | ₹0.15 (for each SMS after the free quota is used) |
| Exempted Messages | OTPs, mandatory security alerts, and promotional messages remain free |
How Many SMS Alerts Are Free?
Kotak offers a monthly quota of 30 free SMS alerts for all account holders. Beyond this, charges will apply. However, the bank has established clear exemption criteria. Customers can avoid these charges entirely if they meet specific balance requirements. This policy is designed to reward customers who maintain a stronger financial relationship with the bank.
The key exemptions are:
- Minimum Balance: Maintaining a combined average monthly balance of ₹10,000 or more in a savings or salary account.
- Kotak 811 Accounts: For Kotak 811 account holders, the required minimum balance is lower, at ₹5,000.
- Account Type: Accounts that receive regular salary credits are also exempt from these charges.
ATM Withdrawal SMS Alerts
SMS alerts for ATM withdrawals are included in the chargeable category. Each withdrawal, whether from a Kotak or a non-Kotak ATM, will trigger an SMS that counts towards your monthly quota of 30 free alerts.
There is no separate or additional free limit for ATM transaction alerts.
This unified approach means that all transactional alerts, be it from UPI, NEFT, RTGS, card swipes, or ATM withdrawals, are pooled together under the same usage-based fee structure.
Present Kotak SMS Alerts Cost
The cost is directly tied to usage beyond the free limit. For every SMS over the 30-per-month quota, a charge of ₹0.15 plus GST will be levied. While this may seem nominal, it can accumulate, especially for customers who transact frequently.
For example, a customer who receives 60 SMS alerts in a month (30 chargeable) would pay ₹4.50 + GST for that month. Over a year, this could amount to ₹54 + GST, an easily avoidable expense.
| Account Type | Condition for Free Alerts | Cost Beyond 30 SMS/Month |
| Regular Savings | AMB of ₹10,000+ | ₹0.15 + GST per SMS |
| Salary Account | Regular Salary Credits | ₹0.15 + GST per SMS |
| Kotak 811 | AMB of ₹5,000+ | ₹0.15 + GST per SMS |
| NRI Accounts | Exempt | Not Applicable |
| Premium Accounts | Exempt | Not Applicable |
Also Read: Your PAN May Stop Working After 31 Dec 2025
Who Will Be Affected by Kotak’s New SMS Charges?
The new charges will affect a wide range of account holders who do not meet the exemption criteria. This includes customers who typically maintain a lower account balance or do not have regular salary credits.
It is a common misconception that customers using mobile banking with push notifications are automatically exempt; this is not the case. Unless SMS alerts are explicitly disabled, the charges will apply regardless of other notification methods used.
The primary groups affected are:
- Regular Savings Account holders with a balance below ₹10,000.
- Kotak 811 account holders with a balance below ₹5,000.
- Minor and joint account holders, if the primary account does not meet the balance criteria.
- Business account holders, depending on their specific account type and features.
Will Current Kotak Account Holders Also Be Affected?
Yes, the revised SMS alert charges apply to both new and existing customers. The charges will be automatically enabled for all eligible accounts. To avoid them, customers must proactively opt out of non-mandatory SMS alerts through their net banking or mobile app.
The deductions for these charges are scheduled to begin with the billing cycle following the effective date in December 2025.
Will Premium Customers or Salary Account Holders Be Affected?
Premium banking customers, such as those in the Kotak Privy League, Kotak Silk, or Kotak Edge programs, are typically exempt from these charges as part of their bundled benefits.
Similarly, most salary account holders will not be affected, as the policy waives the fee for accounts with regular salary credits. To confirm eligibility for a waiver, it is best to contact your relationship manager or the bank’s customer support.
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Tips to Avoid SMS Alert Charges from Kotak
There are several proactive steps you can take to avoid these new charges. The most effective method is to switch from SMS alerts to email and in-app push notifications, which are free. You can also customise your alert settings to receive only the most critical updates.
Here is a step-by-step guide to opting out:
- Log in to your Kotak Net Banking portal or the Kotak Mobile App.
- Navigate to the “Profile” or “Settings” section.
- Find the “Alerts” or “Notifications” menu.
- De-select the non-mandatory SMS alerts for transactions like UPI payments, small-value transfers, etc.
- Ensure that you keep mandatory security alerts (like OTPs) enabled.
- Save your new preferences.
Summary & Key Insights
Kotak Mahindra Bank’s revision of its SMS alert charges marks a significant shift towards a usage-based fee model. While the charges are avoidable, they require customers to be proactive in managing their account settings and maintaining a minimum balance.
The key takeaway is that while OTPs and mandatory alerts remain free, all other transactional SMS messages are now counted towards a monthly quota. The most effective strategy for most customers will be to transition to email and in-app notifications, which offer the same level of security and information without the associated cost.
Regularly reviewing your bank statements for any new charges and staying informed about your bank’s policies is more crucial than ever.
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