Effective from June 30, 2011, all the banks must send the SMS for all the transactions done through credit card or debit card. It is another step taken by the RBI to curb the fraudulent. At this point of time, only few banks (ICICI, HDFC, Axis, SBI) offering the SMS service to the customers. But, there will not be any extra investment for the banks in this regard.
At present, banks are required to alert customers on transactions above Rs 5,000 using card numbers or while making online payments. However, SMS alert is sent on the transaction of more than Rs 250. ICICI bank provides alert service on the transaction of more than Rs 400. After this announcement, banks must send SMS for all the transactions.
This would encourage customers to use the cards and make them aware of the transactions made on the card. Nowadays more number of fraud incidents happening through ATMs by the stolen cards. Also, RBI is discussing with the banks to add some more security measures like asking for the PIN while doing the purchase in shops. This would avoid any misuse of the cards by the thieves.