Do u know-Bank charges for SMS alert

DAINIK NATION BUREAU

Charges for SMS alerts on banking transactions may not squeeze account holders much but can be a reasonable earning for many banks, especially in accounts with meagre monthly transactions though income from SMS alert service goes against the advisory from the sector regulator.

While Reserve Bank of India told banks to send SMS alerts for every transaction as means to fight frauds, the regulator also directed banks to levy charges on actual usage basis. RBI said charges on actual usage basis would promote reasonableness in customer dealings but a majority of banks, including leaders State Bank of IndiaNSE 2.49 % and ICICI Bank, do not follow the norm.

“This is certainly not in line with RBI’s advice. It’s a violation,” said AC Mahajan, chairman at Banking Codes and Standards Board of India (BCSBI), an independent banking industry watchdog to protect consumers’ interest.

A BCSBI study shows that 19 out of 48 banks levy a fixed quarterly charge of Rs 15 while customers actually pay Rs 17.7 including taxes at present.

“BCSBI feels customers with low volume should not be penalized with fixed charges. However, as rates are de-regulated, BCSBI cannot intervene if such rates are notified to customers well on time,” Mahajan said.

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