Option (2) is only worthwhile if it's issued lifetime free, which typically applies to NTB customers who open a Kotak 811 Super Account with a minimum IP of ₹81,000. In all other cases, this card comes with an issuance fee of ₹4,999 + GST and an annual fee of ₹999 + GST.
if your account is still active then no, you will need to pay the 5k issuance fee. you wont get any annual fee as long as you have the 811 super account.
You need to be new to bank to get the 81k initial deposit free metal card thing.