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Banks Ask RBI to Drop SMS Alerts on Payments Under ₹100

13 October 20251 min read
BANKING & FINANCEBanks Ask RBI toDrop SMS Alertson PaymentsUnder ₹10013 October 2025safalsetu.com

Why in the news

Banks asked RBI to stop mandatory SMS alerts on payments below ₹100, saying heavy UPI use floods customers with messages.

Key facts

  • Threshold: below ₹100.
  • Too many alerts cause clutter, so customers may miss alerts for bigger payments.
  • Present rule: RBI guidelines require SMS alerts for all electronic banking transactions; one SMS costs about ₹0.20.

Proposed safeguards

  • Alerts continue if small payments cross a set value or count in a period.
  • Banks take customer consent first.
  • Free app notifications or email remain available.

Exam angle

  • Regulator: RBI; limit: below ₹100.

Test yourself

1. Below what transaction value did banks ask RBI to exempt SMS alerts?

The request covers transactions below ₹100.

2. Which payment mode's growth was cited as the reason for the SMS alert exemption request?

The notes say UPI-led small transactions created alert clutter.

3. What would banks seek before applying the proposed SMS exemption?

Banks would take customer consent first.

This topic is part of Daily Current Affairs 13 October 2025 (18 topics).

All topics of the dayDay quizOctober 2025

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