RBI junks digital transaction charges, sets up panel on ATM interchange

RTGS, meant for large-value instantaneous fund transfers, and NEFT, for other fund transfers, are operated by the central bank

The Reserve Bank of India (RBI) in its monetary policy meeting on Thursday announced the waiver of certain digital transaction fees and set up a committee to review the long-disputed automated teller machine (ATM) interchange. 

Waiver of NEFT, RTGS charges

In order to accelerate digital payments in the country, the RBI decided to remove the charges it levied on transactions done under Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT).

“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,” said the RBI in its