RBI Mandates Actual-Use SMS Alert Charges for Cooperative Banks
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2013-14/513 · issued 05 Mar 2014 · ~2 min read
Quick answerRBI directs StCBs/DCCBs to charge SMS alerts on actual usage basis only, leveraging technology to ensure fairness. No flat fees allowed. Banks must also adopt transparent service charge principles per the Annex.
What changed
RBI reinforced that cooperative banks must charge SMS alerts based on actual usage, not flat rates, referencing earlier circulars from 2009 and 2011. Banks are now explicitly required to use available technology to implement this. An Annex outlines principles for reasonable service charges on basic banking services.
What it means for you
Cooperative banks can no longer levy uniform SMS alert charges; they must bill per actual alert sent. This ensures equity for customers who receive fewer alerts. Banks need to upgrade or integrate with telecom systems to track usage accurately. Non-compliance could invite regulatory scrutiny.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Audit current SMS alert charging model and shift to actual-usage billing immediately.
Coordinate with telecom service providers to implement usage-based tracking and billing.
Review and align all service charges for basic banking services with the principles in the Annex.
Acknowledge receipt of this circular to your respective RBI Regional Office.
Ensure online alerts for all card transactions, regardless of amount, are active as per earlier mandates.
Who it affects
State Cooperative Banks (StCBs), District Central Cooperative Banks (DCCBs), Customers of cooperative banks using card transactions, IT and operations teams at cooperative banks
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-18 10:34 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn03 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Does this circular apply to all SMS alerts or only card transactions?
It applies to SMS alerts for all types of transactions involving card usage at various channels, as per earlier circulars. The actual-usage charging principle covers these alerts.
What if our bank cannot technically implement actual-usage billing immediately?
RBI expects banks to leverage available technology and work with telecom providers. A transition plan should be in place; delays may require explanation to the Regional Office.
Are there penalties for non-compliance?
The circular does not specify penalties, but non-adherence to RBI directives on customer service and reasonableness can lead to supervisory action or adverse remarks in inspections.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #939: RPCD.CO.RCB.BC.No.90/07.51.010/2013-14 — "Ensuring Reasonableness of Bank Charges and Charges Levied for Sending SMS Alerts by State Cooperative Banks (StCBs) ”
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/513
RPCD.CO.RCB.BC.No. 90 /07. 51.010 /2013-14
March 05, 2014
The Chairmen
All State/ District Cooperative Banks
Dear Sir/Madam,
Ensuring Reasonableness of Bank Charges and Charges Levied for Sending SMS Alerts by State Cooperative Banks (StCBs) /District Central Cooperative Banks (DCCBs)
Please refer to paragraph 37 of the Second Quarter Review of Monetary Policy Statements 2013-14 announced on October 29, 2013 ( extract enclosed ) on ‘Customer Service – Charges Levied by Banks for sending SMS alerts’. State Cooperative Banks (StCBs) /District Central Cooperative Banks (DCCBs) are required to put in place a system of online alerts for all types of transactions, irrespective of the amounts, involving usage of cards at various channels in terms of circular RBI/DPSS.No.1501 /02.14.003/2008-09 dated February 18, 2009 and DPSS.CO.PD. 2224/ 02.14.003/ 2010-11 dated March 29, 2011 .
2. Considering the technology available with banks and the telecom service providers, it should be possible for StCBs / DCCBs to charge customers based on actual usage of SMS alerts. Accordingly, with a view to ensuring reasonableness and equity in the charges levied by StCBs/DCCBs for sending SMS alerts to customers, StCBs/DCCBs are advised to leverage the technology available with them and the telecom service providers to ensure that such charges are levied on all customers on actual usage basis.
3. Further, the principles to be adopted/followed by StCBs/DCCBs for ensuring reasonableness in fixing and communicating the service charges for the basic banking services are indicated in the Annex . StCBs/DCCBs are required to take action as stated in the column ‘Action Points for StCBs/DCCBs’.
4. Please acknowledge receipt to our Regional Office concerned.
Yours faithfully,
(A.Udgata)
Principal Chief General Manager
Extract from Second Quarter Review of Monetary Policy 2013-14
Customer Service - Charges Levied by Banks for Sending SMS Alerts
37. With a view to ensuring reasonableness and equity in the charges levied by banks for sending SMS alerts to customers, banks are advised to leverage the technology available with them and the telecom service providers to ensure that such charges are levied on all customers on actual usage basis.
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/513 · issued 05 Mar 2014. The plain-English explanation above is BankPulse’s own independent summary.
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8765&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
Help us keep this accurate
Found an inaccuracy or have an improvement? Tell us. Every report is reviewed by our team before any change is made — nothing goes live unverified.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
BANKPULSE · FREE DAILY BRIEF
Get RBI updates for your role
Every important RBI update, decoded in plain English — for your career, exams & financial awareness.
We collect only your email, name and role, used solely to send your brief — never sold or shared. Withdraw anytime via the unsubscribe link in any email. Independent platform, not affiliated with the RBI. Information, not legal advice.
REPORT AN ERROR · BETA
Spotted an error? Earn 500 BankPulse Credits
Help us stay accurate. If your correction is verified true and approved by our founder, you earn 500 BankPulse Credits — redeemable when the platform monetises.
Reviewed by a human before any credit is awarded. We never change the site from crowd input without verification.
WANT A NEW FEATURE · BETA
What would make BankPulse more useful for you?
Tell us what to build next — a tool, a data view, a role page, anything. We read every suggestion.
Thank you — your ideas directly shape what we build.