SMS Charges
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RBI/2013-14/381
DBOD. No. Dir. BC. 67/13.10.00/2013-14
November 26, 2013
All Scheduled Commercial Banks
(Excluding RRBs)
Dear Sir/ Madam
Charges Levied by Banks for Sending SMS Alerts
Please refer to paragraph 37 of the Second Quarter Review of Monetary Policy Statement 2013-14 announced on October 29, 2013 (extract enclosed) on ‘Customer Service- Charges Levied by Banks for Sending SMS Alerts’.
2. In this connection, a reference is also invited to our circular DBOD. No. Dir. BC. 56/ 13.03.00/ 2006-2007 dated February 2, 2007 on ‘Report of the Working Group to Formulate a Scheme for Ensuring Reasonableness of Bank Charges’ whereby banks were advised to identify basic banking services on the basis of broad parameters indicated by the Working Group constituted by Reserve Bank of India for the purpose and the principles to be adopted/ followed by them for ensuring reasonableness in fixing and communicating the service charges for the basic banking services.
3. Banks are required to put in place a system of online alerts for all types of transactions irrespective of the amounts involving usage of cards at various channels in terms of circular RBI/ DPSS No. 1501/ 02.14.003/ 2008-2009 dated February 18, 2009 and DPSS. CO. PD. 2224/ 02.14.003/2010-2011 dated March 29, 2011. Banks have accordingly put in place a system of SMS alerts so as to help customers in fraud mitigation and have been levying uniform service charges to various categories of customers.
4. Considering the technology available with banks and the telecom service providers, it should be possible for banks to charge customers based on actual usage of SMS alerts. Accordingly, with a view to ensuring reasonableness and equity in the charges levied by banks for sending SMS alerts to customers, banks are advised to leverage the technology available with them and the telecom service providers to ensure that such charges are levied on all customers on actual usage basis.
Yours faithfully,
(Rajesh Verma)
Chief General Manager
Encl: As above
Extract from Second Quarter Review of Monetary Policy 2013-14
Customer Service - Charges Levied by Banks for Sending SMS Alerts
37. With a view to ensuring reasonableness and equity in the charges levied by banks for sending SMS alerts to customers, banks are advised to leverage the technology available with them and the telecom service providers to ensure that such charges are levied on all customers on actual usage basis.
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RBI/2013-14/381
DBOD. No. Dir. BC. 67/13.10.00/2013-14
November 26, 2013
All Scheduled Commercial Banks
(Excluding RRBs)
Dear Sir/ Madam
Charges Levied by Banks for Sending SMS Alerts
Please refer to paragraph 37 of the Second Quarter Review of Monetary Policy Statement 2013-14 announced on October 29, 2013 (extract enclosed) on ‘Customer Service- Charges Levied by Banks for Sending SMS Alerts’.
2. In this connection, a reference is also invited to our circular DBOD. No. Dir. BC. 56/ 13.03.00/ 2006-2007 dated February 2, 2007 on ‘Report of the Working Group to Formulate a Scheme for Ensuring Reasonableness of Bank Charges’ whereby banks were advised to identify basic banking services on the basis of broad parameters indicated by the Working Group constituted by Reserve Bank of India for the purpose and the principles to be adopted/ followed by them for ensuring reasonableness in fixing and communicating the service charges for the basic banking services.
3. Banks are required to put in place a system of online alerts for all types of transactions irrespective of the amounts involving usage of cards at various channels in terms of circular RBI/ DPSS No. 1501/ 02.14.003/ 2008-2009 dated February 18, 2009 and DPSS. CO. PD. 2224/ 02.14.003/2010-2011 dated March 29, 2011. Banks have accordingly put in place a system of SMS alerts so as to help customers in fraud mitigation and have been levying uniform service charges to various categories of customers.
4. Considering the technology available with banks and the telecom service providers, it should be possible for banks to charge customers based on actual usage of SMS alerts. Accordingly, with a view to ensuring reasonableness and equity in the charges levied by banks for sending SMS alerts to customers, banks are advised to leverage the technology available with them and the telecom service providers to ensure that such charges are levied on all customers on actual usage basis.
Yours faithfully,
(Rajesh Verma)
Chief General Manager
Encl: As above
Extract from Second Quarter Review of Monetary Policy 2013-14
Customer Service - Charges Levied by Banks for Sending SMS Alerts
37. With a view to ensuring reasonableness and equity in the charges levied by banks for sending SMS alerts to customers, banks are advised to leverage the technology available with them and the telecom service providers to ensure that such charges are levied on all customers on actual usage basis.
more
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View all 22 comments Below 22 comments
SMS and ATM/card transection is done for benefit of Banks, it reduces their manpower consumption thereby less expenses for them hence they should provide these services free of cost instead they are profiteering from it. more
Apr 11
All further charges introduced subsequent to account opening, should be optional and applicable only if customer wants the facility. Today its compulson & not a fair trade practice.. more
Mar 03
In name of various charges, Banks (Pvt as well PSU) are exploiting the customers. Govt as well as RBI are impotent to take any action as widely seen during Notebandi and NPA episodes. Customers are helpless as money gets deducted by itself and none to appeal. In long run, this way Banks as well as Govt is loosing well wishers. Why is similarly no deductions when Banks fail to provide timely services. Its exploitation and must be stopped immediately. more
Mar 03
The Duty of Bank is to give facility to its Customers. The deposit whether Fixed or Saving on which Bank makes profit. From this Profit the Employees Salary and Bank Overhead are reduced and later on the remaining balances the Interest is laid down to its Account holder. This is done only to Safe guard and Avoid the Mis use of Money. Money is kept in Rotation/Circulation that is the Fundamentals. So the bank must give free SMS & NO CHARGES ON THE USE OF ATM/CREDIT CARDS USE as a Facility. more
Mar 02
Banks no longer bother about RBI Guidelines. These alerts should be free of charge. Clients may be given option of SMS or Email alerts. more
Mar 01
