Banks asked to inform customers of fund transfers

June 17th, 2009 - 7:04 pm ICT by IANS  

Mumbai, June 17 (IANS) India’s central bank has asked banks to inform customers about fund transfers through email or short messaging service (SMS) and revert uncredited funds within 90 minutes.
“We understand that quite a good number of banks send SMSs to the account holders as and when the account is debited/credited,” Reserve Bank of India (RBI) said in a notification Tuesday.

“However, in order to make RTGS more customer friendly, all RTGS participants may explore the possibility of sending SMS/email information to customers when an RTGS debit/credit takes place,” it added.

RTGS or “real time gross settlement” system is a funds transfer mechanism where transfer of money takes place from one bank to another on a “real time” and “gross” basis.

“Funds that cannot be credited to the account of the beneficiary for some reason or other, have to be sent back to the sender’s account within one hour and thirty minutes,” the Reserve Bank of India (RBI) said.

The notification comes in the wake of complaints that banks did not inform customers about fund transfers.

“Some of the trade bodies and business councils have brought to our notice their difficulties on account of banks not notifying the RTGS debits or credits as and when the same takes place in the accounts of the customers,” the apex bank noted.

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