Raymond M

RBI Scraps Charges on NEFT, RTGS Transfers

With an aim to boost digital payments, the Reserve Bank of India has decided to do away with the charges levied on Real Time Gross Settlement (RTGS) and National Electronic Fund Transfer (NEFT) transactions. This decision made by the RBI will encourage more people to resort to digital payments. Currently, the RBI levies minimum charges on banks for transactions routed through its RTGS system meant for large-value (Rs. 2 lakh and above) instant fund transfers and NEFT System for other fund transfers (below Rs. 2 lakh). Due to this, banks levy charges on their customers.

NEFT is a nation-wide payment system that facilitates one-to-one funds transfer. As a part of this Scheme, individuals and corporates can electronically transfer funds from any bank branch to any individual or corporate having an account with any other bank branch in the country.

As per the RBI website, the structure of NEFT charges is given below:

RTGS charges

In addition to that, the Reserve Bank of India has also decided to set up a committee to examine the entire range of Automated Teller Machines (ATM) charges and fees. Headed by Chief Executive Officer of the Indian Banks Association (IBA), the committee will submit its recommendations within two months of its first meeting. Also, learn about tax exemption for personal loan for the tax payers.

Usage of ATMs by the people has grown significantly since the demonetization of Rs 500 and Rs 1,000 banknotes of the previous series in November 2016. However, there have been constant demands to lower the ATM charges.

Lastly, the RBI has also decided to reduce the repo rate. Due to this RBI rate cut, borrowers can avail different types of personal loan at a reduced interest rate.

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