Hi Vaibhav,
We do have an email rule that can be applied to a folder. This can be triggered when new content is added to (inbound rule) or removed from (outbound rule) the folder, causing an email to be sent.
It's not a very advanced implementation at the moment, the message sent is fairly static, but there is no reason why it couldn't be improved to, for example, use a template to format the outgoing message. Also there is no reason why we couldn't add an SMS rule to do a similar job.
Adding these features as Rules gives us quite a bit of flexibility as the conditions for rule execution can be quite detailed (especially since in the next release you can add multiple conditions on a rule).
Thanks,
Roy