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RBI scraps charges for RTGS and NEFT transactions


In an effort to boost digital payments, the (RBI) on Thursday scrapped charges levied on Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) transactions.

At present, the RBI levies minimum charges on banks for transactions routed through its system meant for large-value (Rs 2 lakh and above) instantaneous fund transfers and System for other fund transfers (below Rs 2 lakh). In turn, banks 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 Reserve Bank for transactions processed in the and systems," said the central bank in a statement.

"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," it said.

The RBI has also decided to set up a committee to examine the entire gamut of automated teller machines (ATM) charges and fees. Headed by of the Indian Banks' Association (IBA), the committee will submit its recommendations within two months of its first meeting.

The composition and terms of reference will be issued within a week.

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

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Thu, June 06 2019. 13:11 IST