What changed
RBI advised banks to move from uniform SMS alert charges to a system where fees are based on actual usage per customer, referencing earlier circulars on online alerts for card transactions (2009, 2011) and the 2007 working group on reasonable bank charges.
What it means for you
Banks must implement or upgrade systems to track and bill SMS alerts individually, ending flat-fee structures, as advised by RBI to ensure reasonableness and equity.
What you must do
- Review current SMS alert charging models and transition to actual-usage-based billing for all customer categories.
- Coordinate with telecom service providers to enable per-alert tracking and cost allocation.
- Update internal systems and customer communication to reflect the new charging method.
- Ensure compliance with earlier circulars on online alerts for card transactions (2009, 2011) while implementing this change.
Who it affects
All scheduled commercial banks (excluding RRBs), Retail and corporate customers receiving SMS alerts, Bank IT and operations teams handling alert systems
Does this circular apply to Regional Rural Banks?
No, the circular explicitly excludes RRBs from its scope.
What is the deadline for implementing actual-usage-based charges?
The circular does not specify a deadline; banks are advised to leverage technology to implement this.
Will this affect the mandatory SMS alerts for card transactions?
No, the mandate for online alerts on all card transactions remains unchanged; only the charging method shifts to actual usage.