Email alerts on all credit card-based transactions: RBI

Mumbai: Customers will get alerts on their e-mails for all transactions done through their debit or credit cards from June 30, 2011.

The guidelines issued to the lenders by the Reserve Bank is aimed at checking fraudulent transactions and encouraging usage of cards by customers.

Presently, only some banks are intimating their customers through sms and email about transactions done on their debit and credit cards.

"It is decided that banks make take steps to put in place a system of online alerts for all types of transactions, irrespective of the amount, involving usage of cards at various channels," the RBI said.

This measure is expected to encourage further usage of cards at various delivery channels. Banks may implement this measure latest by June 30, 2011, it added.

RBI's initiative comes amid incidents of fraudulent withdrawals at ATMs. It is important to arrest the incidents of frauds in order to further encourage card based transactions in the country.

At present, banks are required to alert customers on transactions above Rs 5,000 using card numbers or while making online payments.

Source: Financial Express