Kotak Mahindra Bank To Charge Rs 0.15 Per SMS For Not Maintaining Minimum Balance

Kotak Mahindra Bank has introduced a new fee structure, applicable in case customers do not maintain the minimum required average balance in their savings accounts. From December 1, 2025, onward, the bank will charge Rs 0.15 per message for sending SMS alerts to customers on deposits, withdrawals, and other transactions in the account.

Customers who keep the required monthly minimum balance will not be charged for the SMS alerts, while those whose balance falls below the set limit will be charged. The bank sends these alerts to the account holder to monitor their financial activities, but this new policy means customers who fail to maintain the required balance will now have to pay for this service.

Why the Change is Important

The interest in the decision has been sparked because this reflects how banks are adjusting to increasing digital and regulatory costs. Even a small per-SMS fee will matter if customers depend a lot on SMS alerts rather than mobile banking applications or emails. The charge of Rs 0.15 per message individually would not be felt, but collectively, over months, the impact could be seen by low-balance account-holders.

Many customers in smaller towns and semi-urban areas still depend on SMS notifications due to limited internet access. To them, this extra charge could feel like a penalty for being unable to maintain higher balances. The move could also encourage some customers to shift to digital alerts on mobile banking apps, which are normally free.

Other Updates from the Bank

Moreover, the bank has revised certain other charges along with the new fee. Starting November 1, the lender revised its debit card issuance and annual maintenance fees. These changes are part of a periodic adjustment in the bank's fee structure in line with operational expenses and customer usage patterns.

The customers should go through the bank's schedule of charges to understand how these changes could affect them. Keeping regular checks will help avoid unnecessary deductions by maintaining the required minimum balance in such accounts.