Charge for SMS alerts on actual usage basis: RBI to banks

The RBI, in its  Second Quarter Review of Monetary Policy 2013-14, asked banks to charge customers for transaction SMS alerts on the basis of usage, instead of imposing a fixed fee, to ensure equity and be reasonable.
In March 2011, the RBI had released guidelines for banks to send online alerts to customers for all types of transactions, irrespective of the amount. However, it had not issued norms on charging customers for these alerts.
Earlier in the year, State Bank of India levied an annual charge of Rs 60 for SMS alerts, a move followed by banks such as Canara Bank. A number of other PSU banks which follow this practice include Punjab National Bank, State Bank of Patiala, IDBI and Vijaya Bank.

Month: Current Affairs - November, 2013