11:00, 11/11 Easemoney News desk: Kotak Mahindra Bank has announced that from December 1, 2025, it will start charging ₹0.15 for every SMS alert sent to customers once they cross 30 free alerts per month.
As per the SMS charges report PDF, this change applies to all Kotak savings and salary accounts, including popular Kotak 811 zero-balance accounts. While the charge sounds small, it’s important to understand who will pay and who won’t.
The New Rule Explained in simple words
- Every Kotak account holder will get 30 free SMS alerts per month.
- After that, each SMS — like alert, such as UPI, ATM withdrawals, IMPS, NEFT, RTGS, debit card swipes, cheque deposits, or cash transactions, will cost ₹0.15.
- However, Kotak has made it clear that you can avoid this fee easily by maintaining a minimum combined balance in your account.
Minimum Balance Rule — Two Key Thresholds
| Account Type | Keep This Balance to Avoid SMS Fee | What Counts Toward It |
|---|---|---|
| Regular Savings / Salary Account | ₹10,000 or more | Monthly Average Balance (MAB) + any Term Deposits linked to your account |
| Kotak 811 (Lite / Limited / Full KYC) | ₹5,000 or more | Account balance + any fixed deposit (FD) you hold with Kotak |
So, if you have a zero-balance account but keep even a small fixed deposit or recurring deposit that pushes your total above ₹5,000 (for 811) or ₹10,000 (for savings), you won’t be charged anything.
Kotak counts your combined balance — not just what’s in your main account.
EaseMoney Explain Box
“Maintain balance” doesn’t mean you must keep money in your account every single day.
Kotak calculates your Monthly Average Balance (MAB) — the average of your daily closing balances over a month.Example: in a 30-day month, if you had ₹50,000 for 10 days, ₹0 for the next 10 days, and ₹2,000 for the next 10 days, your average balance would still be ₹17,333 — which is above the ₹10,000 limit.
That means your account is considered active and well maintained, and you won’t be charged the ₹0.15 per SMS fee.
A Real-Life Example for You:
If you are a Kotak 811 user with a balance of ₹1,000 in your account and a ₹4,500 fixed deposit, totalling ₹ 5,500, you are safe; no SMS fee will be charged to you.
However, if both are below ₹5,000 and you receive over 30 alerts per month, you will pay ₹0.15 per SMS from the 31st alert onwards.
Even if you are charged, the total cost is tiny — for example, 60 SMS alerts in a month = ₹4.50, or about ₹54 a year. However, you can completely avoid that just making transactions daily with your account using UPI or maintaining a good balance. As per the reports, the charges are set for those untouchable accounts that open but never maintain a balance.
Exempt accounts
Kotak confirmed that some special accounts won’t be charged at all.
These include:
- Private Banking and Privy League accounts
- Corporate Salary and Government Business accounts
- Financial Inclusion accounts, PM Jan Dhan, and BSBDA accounts
- Kotak 811 Super Savings Account
These categories remain fully exempt from the new SMS alert charges.
What You Can Do to Avoid Charges
- Keep your combined balance above ₹10,000 (or ₹5,000 for 811 users)
- Use the Kotak Mobile App for instant push notifications instead of SMS
- Opt for email alerts — they are completely free
- Track messages and transaction summaries through the ActivMoney dashboard
Easemoney View
Unlike other private banks that quietly raise penalties, Kotak has chosen transparency — giving customers fair warning and simple ways to stay exempt.
Even zero-balance users can avoid charges just by keeping ₹5,000 parked in savings or a small deposit.
For most people, nothing really changes — just a small reminder that digital convenience now comes with micro-costs if balances are too low.
Read more news – RBI Approves UPI Wallet for Kids — No Bank Account Needed, But How?
