What changed
RBI advised RRBs to charge SMS alerts on actual usage basis, as per the Second Quarter Review of Monetary Policy 2013-14. This replaces any flat or bundled fee structures. Banks are also required to adopt principles for reasonable service charges outlined in the annex.
What it means for you
RRBs can no longer levy uniform SMS alert charges; they must align fees with actual usage. This ensures equity for customers, especially in rural areas. Banks may need to upgrade systems to track usage accurately, potentially impacting operational costs.
What you must do
- Implement systems to charge SMS alerts based on actual usage per customer.
- Review and revise service charge structures for basic banking services as per RBI principles.
- Ensure online alerts for all card transactions regardless of amount, as per earlier circulars.
- Communicate revised charges transparently to customers and acknowledge receipt to RBI regional office.
Who it affects
All Regional Rural Banks (RRBs), RRB customers using card transactions, RRB compliance and IT teams
Does this apply to all SMS alerts or only card transactions?
The circular specifically references alerts for card transactions at various channels, and advises RRBs to charge based on actual usage for such alerts.