In order to make banking services more customer-friendly, the Reserve Bank of India (RBI) 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 the instructions 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.
More From This Section
The practice of intimating customers about fund transfers real time will also help in checking fraudulent withdrawals, in addition to providing the details of the current balance.
Besides extensively using SMS, the RBI also wants banks to send emails to customers about debit and credit in their accounts.
The information about accounts provided through emails would give an opportunity to customers to access their accounts on the internet without visiting the bank branches.
Meanwhile, the RBI has also asked banks to adopt the new compliance format to track inter-bank transfers of funds under the RTGS.
Under the current RTGS Business guidelines, banks are required to credit the funds into the beneficiary's account instantly. In case the fund, for some reason or the other, is not transferred within one and a half hours, it has to be returned to the sender's account in the same time.