The Reserve Bank of India (RBI) has announced that it has abolished charges on NEFT and RTGS transaction. The apex bank has taken this step to promote digital transactions. Instructions to banks will be issued in a week. As per RBI report 20.34 crore transactions were done through NEFT and 1.14 crore transactions were carried out through RTGS mode.
An amount of more than 2 lakh can be transferred through Real Time Gross Settlement (RTGS). The amount is credited instantly to the beneficiary’s account. National Electronic Fund Transfer (NEFT) is used for fund transfers up to 2 lakh.
Country’s largest bank SBI charges between Re 1 and Rs 5 for transactions through NEFT and between Rs 5 and Rs 50 for RTGS route.
In its statement on developmental and regulatory policies after the Monetary Policy Committee’s meeting, the RBI said it levies minimum charges on banks for transactions routed through RTGS and NEFT system for other fund transfers.
Banks, in turn, levy charges on their customers.
In order to provide an impetus to digital funds movement, it has been decided to do away with the charges levied by the RBI for transactions processed in the RTGS and NEFT systems, it said.
“Banks will be required, in turn, to pass these benefits to their customers. Instructions to banks in this regard will be issued within a week,” the central bank said.