The RBI today asked banks to charge customers for transaction SMS alerts on the basis of use, instead of imposing a fixed fee. “Banks are advised to leverage the technology available with them and the telecom service providers to ensure that such (SMS) charges are levied on all customers on actual usage basis,” the Reserve Bank said in the monetary policy review. It said fees based on actual use are necessary to ensure reasonableness and equity in charges levied by banks. In March 2011, the RBI had set guidelines for banks to send online alerts to customers for all types of transactions, irrespective of the amount.

Inflation bonds

The apex bank plans to soon launch a 10-year savings instrument that will offer inflation-linked returns to small investors as an alternative to investing in gold. The inflation-indexed securities for retail investors will be linked to the new (combined) consumer price index. The interest on these securities will comprise a fixed rate plus inflation. “The interest will be compounded half-yearly and paid cumulatively at redemption. These securities will be distributed through banks to reach out to the masses,” the central bank said.

For consumers

The RBI will implement the FSLRC’s recommendations on consumer protection and will soon come out with consolidated instructions relating to consumer services in the financial sector. The RBI will set up a committee to examine capacity building in the financial market and find out whether a system of formal certification is warranted for certain job descriptions within the central bank and in the financial entities and market segments regulated by it. The guidelines will be posted on the RBI’s website by January 2014.