Can RSA AM send an email to user when a token is assigned from Security Console along with activation link and code for CT-KIP method? We would like to avoid manual email communication with user and want RSA AM to communicate the token activation details.
Just in the security console as you described, no.
If an admin distributes the token from the security console, it is a manual copy/paste email. If provisioning is enabled and users request tokens in the self-service console, then when an admin approves the token, an email can be automatically sent. If you use AMBA (auth manager bulk admin) to perform soft-token deployment, emails can be automatically generated.