New Delhi : Charges for SMS alerts on banking transactions may not squeeze account holders much but can be a reasonable earning for many banks, especially in accounts with meagre monthly transactions though income from SMS alert service goes against the advisory from the sector regulator.
While Reserve Bank of India told banks to send SMS alerts for every transaction as means to fight frauds, the regulator also directed banks to levy charges on actual usage basis would promote reasonableness in customer dealings but a majority of banks, including leaders State Bank of India and ICICI bank , do not follow the norm. “This is certainly not in line with RBI’s advice. It’s a violation,” said AC Mahajan, chairman at Banking Codes and Standards Board of India (BCSBI), an independent banking industry watchdog to protect consumers’ interest.
RBI had directed banks to send mandatory SMS alerts for transactions through debit card, for ATM cash withdrawals, NEFT and RTGS transactions once funds are credited in the beneficiary account, and these are non- chargeable . Alerts for all other transactions are chargeable under RBI rules