B L Ramkumar.k:!6 Dec 2013
Instead of linking the charges to the number of transaction alerts received by customers, banks are weighing the possibility of recovering Rs 5-10 a month from those opting to receive the alerts via SMS.
Though the central bank has pointed out that technology is available with banks and service providers for implementing a system for generating SMS alerts and charging customers based on actual usage of the alerts, bankers have a different view.
Tough to implement
According to a senior Central Bank of India official, banks may find it difficult to implement the RBI’s directive on SMS alerts as it involves maintaining records of the alerts sent to each customer, calculating the charges and debiting the accounts.
Further, disputes could arise between customers and banks on the amount debited towards charges for sending alerts for transactions.
Currently, banks, on an average, are charging customers who have opted for the SMS alert service, Rs 15 per quarter.
To avoid the hassle involved in maintaining customer-wise record on the number of SMS alerts sent and the likely disputes relating to the charges levied, banks plan to move the central bank to allow them to charge customers who opt for the service a flat Rs 5-10 a month, said another public sector bank official.
With increased use of credit/debit cards in the country, the RBI, in 2009, had asked banks to start a system of transaction alerts, including via SMS.
The alert system has been put in place to help customers in fraud mitigation.
Will prevent fraud
The RBI is of the view that the system of online alerts for all types of transactions, irrespective of the amount, involving usage of cards at various channels, will help mitigate incidents of frauds and encourage card-based transactions in the country.
(This article was published in the Business Line print edition dated December 16, 2013)
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