@kalki ji, your account will always have some "threshold amount" set by the bank, based on your balance and transactions pattern as told by Kotak RM.
I also recently opted for Activmoney feature of Kotak. In my case, this threshold amount is 3L. So, at all points, 3L will remain in my saving account, and only excess (above 3L) funds will be swept into Activmoney FD.
E.g. I was allotted Cello worth 2.xx lacs yesterday, and balance in my saving a/c was 3.xx lacs, so 2.xx lacs got debited, and similar amount was swept out of Activmoney into saving a/c.
Litmus test will be when allotment goes above 3L (possible with bhni application in an undersubscribed or less subscribed IPO like Updater Svcs). I didn't apply in Updater, else would have got to know.