Banks need to give fund transfer details on SMS/emails: R

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)

18 June 2009

Thursday 18 June, 2009.

Banks need to give details of fund transfer on SMS/emails: RBI

In order to make banking services more customer-friendly, the Reserve Bank of India wants more and more banks to adopt the practice of informing customers about fund transfers through SMS and emails.

Although many banks are using technology to instantly inform customers about debits and credits in their accounts, the RBI in a notification said all banks should explore the possibility of adopting the practice.

"In order to make Real Time Gross Settlement (RTGS) more customer friendly, all RTGS participants may explore the possibility of sending SMS/email information to customers when an RTGS debt/credit takes place," the central bank said in a notification.

Most of the banks are part of the RTGS system, which allows them to transfer funds real time.

The RBI has issued instructions to banks to use technology to inform customers about transfers of funds

following complaints by trade bodies and business councils that they face difficulties in knowing about the RTGS

debits/credits.

"Some of the trade bodies/business councils have brought to our notice their difficulties on account of banks not notifying the RTGS debits/credits as and when the same takes place in the accounts of customers," the RBI

notification said.