Small change! Banks seek RBI nod to stop SMS alerts for transactions below Rs 100
October 12, 2025
Banks have asked the Reserve Bank of India for an exemption on sending SMS alerts for small transactions under ₹100. This move aims to reduce customer clutter and fatigue from frequent notifications. Banks propose safeguards, including customer consent, to ensure security. Customers can still opt for alerts via banking apps or emails.
Synopsis
Banks have asked the Reserve Bank of India for an exemption on sending SMS alerts for small transactions under ₹100. This move aims to reduce customer clutter and fatigue from frequent notifications. Banks propose safeguards, including customer consent, to ensure security. Customers can still opt for alerts via banking apps or emails.
New Delhi: Banks have sought an exemption from sending SMS alerts for transactions below ₹100. In a submission to the banking sector regulator, the Reserve Bank of India (RBI), they said that increased use of online payment channels, especially Unified Payments Interface (UPI), has led to a massive increase in small-value transactions and that a series of notifications leads to clutter and fatigue for customers. Besides, they argued, at times this results in customers missing larger value transaction notifications, said people familiar with the development.
"We made this representation last month after holding internal consultations with both public and private sector banks. The issue has been raised with the RBI and we have also submitted a safeguard list to prevent fraud," said a bank executive, who did not wish to be identified.
Queries emailed to the RBI did not elicit a response till press time.
Another bank executive said that the safeguard proposals include notifications on smaller transactions if they surpass a certain value or number of transactions. "Let the RBI take a call, and these adjustments can be made," the person said, adding that if the proposal goes through, banks will take consent from each customer before implementing it.
Live Events
As per existing RBI guidelines, banks mandatorily need to ask and register their customers for SMS alerts and, wherever available, register them for email alerts for electronic banking transactions. The SMS alerts are mandatorily sent to the customers, while email alerts are sent to customers who have registered for the service.
"The customer will be given a choice to opt out of small-value transactions capped at ₹100. If they want to receive alerts, they can still get them through notifications on banking apps or emails," the second bank executive added.
As per industry estimates, the cost of sending SMS by a regulated entity is around ₹0.20. Lenders pass on these charges to customers, while in some accounts they bear the expenses as part of the services provided. Email alerts are, however, free.
Banks have been advised to leverage the technology available with them and telecom service providers directed to ensure that customers are charged on an actual usage basis.
Last year, a parliamentary panel observed a serious anomaly in the financial transaction system, wherein customers are not necessarily receiving SMS notifications when amounts are credited to or debited from their accounts.
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Banks have asked the Reserve Bank of India for an exemption on sending SMS alerts for small transactions under ₹100. This move aims to reduce customer clutter and fatigue from frequent notifications. Banks propose safeguards, including customer consent, to ensure security. Customers can still opt for alerts via banking apps or emails.
New Delhi: Banks have sought an exemption from sending SMS alerts for transactions below ₹100. In a submission to the banking sector regulator, the Reserve Bank of India (RBI), they said that increased use of online payment channels, especially Unified Payments Interface (UPI), has led to a massive increase in small-value transactions and that a series of notifications leads to clutter and fatigue for customers. Besides, they argued, at times this results in customers missing larger value transaction notifications, said people familiar with the development.
"We made this representation last month after holding internal consultations with both public and private sector banks. The issue has been raised with the RBI and we have also submitted a safeguard list to prevent fraud," said a bank executive, who did not wish to be identified.
Queries emailed to the RBI did not elicit a response till press time.
Another bank executive said that the safeguard proposals include notifications on smaller transactions if they surpass a certain value or number of transactions. "Let the RBI take a call, and these adjustments can be made," the person said, adding that if the proposal goes through, banks will take consent from each customer before implementing it.
Live Events
As per existing RBI guidelines, banks mandatorily need to ask and register their customers for SMS alerts and, wherever available, register them for email alerts for electronic banking transactions. The SMS alerts are mandatorily sent to the customers, while email alerts are sent to customers who have registered for the service.
"The customer will be given a choice to opt out of small-value transactions capped at ₹100. If they want to receive alerts, they can still get them through notifications on banking apps or emails," the second bank executive added.
As per industry estimates, the cost of sending SMS by a regulated entity is around ₹0.20. Lenders pass on these charges to customers, while in some accounts they bear the expenses as part of the services provided. Email alerts are, however, free.
Banks have been advised to leverage the technology available with them and telecom service providers directed to ensure that customers are charged on an actual usage basis.
Last year, a parliamentary panel observed a serious anomaly in the financial transaction system, wherein customers are not necessarily receiving SMS notifications when amounts are credited to or debited from their accounts.
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