Source: ET
Context:
Banks in India have requested the Reserve Bank of India (RBI) to allow exemption from sending SMS alerts for low-value transactions (below ₹100), citing growing digital transaction volumes and customer notification fatigue.
Key Highlights:
- Reason for Request:
- Increased use of online payment channels, particularly UPI, has led to a surge in small-value transactions.
- Frequent SMS notifications create clutter and fatigue, sometimes causing customers to miss alerts for higher-value transactions.
- Proposed Safeguards:
- Notifications will still be sent if smaller transactions exceed a certain value or number within a defined period.
- Banks would seek customer consent before implementing the exemption.
- Alerts for customers who want them can continue via banking app notifications or email, which are free.
- Regulatory Background:
- Current RBI guidelines mandate SMS alerts for all electronic banking transactions.
- Customers can register for email alerts; SMS costs (~₹0.20 per SMS) are typically passed to customers or borne by banks depending on account type.
- Banks are advised to use technology and telecom service capabilities to charge customers only for actual usage.
