If you recently noticed ₹118 SMS charges deducted by bank in your statement, you are not alone. Thousands of bank customers in India search every month for “sms charges deducted by bank” after seeing a small debit in their account that they never expected.
The deduction often appears with descriptions such as SMS ALERT CHARGES, SMS FACILITY CHARGE, or SMS SERVICE FEE. In many cases the amount is close to ₹118, ₹59, ₹17.70, or similar figures depending on the bank.
The confusing part is that most people do not remember subscribing to any SMS service. The bank simply deducts the amount automatically, usually once every quarter or once a year.
In this guide we will explain what SMS charges deducted by bank actually mean, why the amount is often ₹118, and whether you can stop or avoid these deductions.
What Are SMS Charges Deducted by Bank?
SMS charges deducted by bank are fees charged for SMS alerts sent to your registered mobile number.
Whenever there is activity in your account, the bank sends a text message informing you about the transaction. These messages help customers keep track of their money and detect fraud quickly.
Typical SMS alerts include notifications for:
• Money credited to your account
• Money debited from your account
• ATM withdrawals
• Debit card transactions
• UPI payments
• Failed transactions
• Balance updates
Banks use telecom networks to send these alerts, and they pay telecom operators for each message. Because of this cost, banks often charge customers a small SMS alert fee.
This fee is usually deducted automatically from your savings account.
Why ₹118 SMS Charges Are Common in Bank Statements
Many people specifically see ₹118 SMS charges deducted by bank. This amount is common because banks combine several components when calculating the fee.
Typical calculation looks like this:
SMS alert service fee
plus
GST (18%)
For example:
₹100 SMS alert service
- ₹18 GST
= ₹118 total deduction
Different banks have slightly different pricing structures, but the final amount often ends up around ₹118 when taxes are added.
7 Reasons Banks Deduct SMS Charges From Your Account
There are several reasons why banks deduct SMS charges.
1. SMS Transaction Alerts
Banks send messages whenever money moves in or out of your account. This helps customers immediately notice suspicious transactions.
Without SMS alerts, it would be much harder to detect fraud quickly.
2. Debit Card Usage Notifications
Each time your debit card is used at an ATM or a merchant terminal, the bank sends an SMS confirmation.
This service is included in the SMS alert system.
3. UPI Transaction Alerts
UPI payments generate SMS confirmations as well. Even if you receive notifications in your UPI app, banks still send a separate SMS alert.
If you often use UPI, you may receive dozens of SMS alerts every month.
You can also read our detailed guide on UPI transaction limits in India which explains how UPI notifications work.
4. Security and Fraud Protection
SMS alerts act as a security layer.
If someone uses your card without permission, the alert allows you to notice the transaction immediately and contact the bank.
Many banks consider SMS alerts an essential safety feature.
5. Regulatory Compliance
Indian banks are required to notify customers about important account activity.
SMS alerts are one of the fastest ways to deliver these notifications.
6. Quarterly Service Charges
Some banks do not charge SMS fees every month. Instead, they deduct the amount once every three months.
That is why the charge sometimes appears suddenly after several months.
7. Charges for Multiple Accounts
If you hold more than one account with the same bank, SMS alert services might apply to each account separately.
This can increase the total SMS fee deducted.
Which Banks Deduct SMS Charges?
Most major banks in India charge some form of SMS alert fee.
These include:
• SBI
• ICICI Bank
• HDFC Bank
• Axis Bank
• Kotak Mahindra Bank
• Yes Bank
Some banks charge yearly fees, while others charge quarterly.
The exact amount varies depending on the bank and the type of account you hold.
How to Check SMS Charges in Your Bank Statement
If you want to confirm whether SMS charges deducted by bank are legitimate, check your statement description.
Common descriptions include:
SMS ALERT CHARGE
SMS FACILITY FEE
SMS SERVICE CHARGE
SMS ALERT CHG
SMS ALERT CHARGE GST
You can view these charges in:
• Net banking transaction history
• Mobile banking apps
• Monthly bank statements
If you often see unexplained deductions, you may also want to read our article Service Charges Debited From My Bank Account – What Does It Mean?
Can You Stop SMS Charges From Bank?
Yes. In many cases you can request the bank to disable SMS alerts.
However there are some important points to consider.
If you disable SMS alerts, you might lose important notifications about account activity. This can increase the risk of missing fraudulent transactions.
Still, some customers prefer using mobile banking app notifications instead of SMS.
To disable SMS alerts you can usually:
• Contact customer support
• Visit your bank branch
• Change notification settings in mobile banking
• Submit a request through net banking
Not all banks allow full deactivation, but some offer limited SMS alerts for free.
Are SMS Charges Mandatory?
SMS charges are usually not mandatory, but they are enabled by default when you open a bank account.
Banks automatically activate SMS alerts because they are considered part of the account security system.
If you want to remove the service, you must request the bank to disable it.
What If SMS Charges Are Deducted by Mistake?
If you believe SMS charges deducted by bank are incorrect, you can raise a complaint.
Steps to follow:
- Check your bank statement details carefully
- Contact customer care and ask for clarification
- Request reversal if the charge was applied wrongly
- File a complaint through net banking if necessary
Banks usually respond quickly to billing related queries.
Why SMS Alerts Still Exist Even With Banking Apps
Some people wonder why banks still charge for SMS alerts when mobile banking apps already provide notifications.
There are several reasons.
SMS messages work even when:
• You do not have internet access
• Your mobile banking app is not installed
• Your phone has limited connectivity
Because SMS works on basic mobile networks, banks continue to rely on it as a reliable communication channel.
SMS Charges vs Other Bank Charges
SMS alert charges are usually small compared to other banking fees.
For example, many customers are more affected by:
• Minimum balance penalties
• ATM withdrawal charges
• debit card annual fees
If you want to understand those deductions better, you can read:
Minimum Account Balance Charges Explained
Hidden Bank Fees in India You’re Probably Paying
These explain several common deductions that appear in bank statements.
How Much Are SMS Charges in Indian Banks?
SMS alert charges vary slightly across banks.
Typical range:
₹15 to ₹25 per quarter
₹60 to ₹120 per year
After adding GST, the amount can appear as values like:
₹17.70
₹59
₹118
That is why many people specifically notice ₹118 SMS charges deducted by bank.
Quick Summary
If you see ₹118 SMS charges deducted by bank, it usually means your bank charged a fee for SMS transaction alerts.
These alerts notify you about:
• withdrawals
• deposits
• card usage
• UPI payments
The charge may appear quarterly or yearly depending on the bank.
If you do not want the service, you can contact your bank and request deactivation.
Frequently Asked Questions
Why are SMS charges deducted by bank?
Banks deduct SMS charges for sending transaction alerts to your registered mobile number. These alerts inform you about deposits, withdrawals, and card usage.
How much are SMS charges in banks?
SMS alert charges usually range from ₹60 to ₹120 per year depending on the bank. After GST, the amount may appear as ₹118 in your statement.
Do I get charged for receiving SMS from bank?
Yes. Many banks charge a small fee for SMS alert services because they pay telecom operators to send those messages.
Can I stop SMS charges from bank?
In most cases you can request your bank to disable SMS alerts through customer care, net banking, or by visiting a branch.
Are SMS alerts necessary?
SMS alerts help detect fraudulent transactions quickly. Even though they cost a small amount, many customers keep the service active for security.
If you want to understand other confusing deductions in your bank statement, you may also find these guides useful:
• Account Maintenance Charges Explained
• UPI Payment Failed but Money Deducted – When Will I Get It Back?
• UPI Debit Reversed but Balance Still Not Updated
Each article explains a common banking problem in simple language so that anyone can understand what is happening with their money.