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RTGS, NEFT transfers set to get cheaper from today as RBI scraps charges

Currently, the RBI 'levies minimum charges' on banks for transactions routed through its RTGS and NEFT system

Press Trust of India  |  Mumbai 

Bank

Fund transfer through and systems is set to become cheaper from Monday after the Reserve Bank of India decided it will not impose any charges on such transactions.

After announcing its decision to waive all charges on fund transfer through and systems from July 1, the Reserve Bank of India (RBI) had also asked to pass on the benefits to customers from the same day.

The real-time gross settlement (RTGS) system is meant for large-value instantaneous fund transfers, while the national electronic funds transfer (NEFT) system is used for fund transfers of up to Rs 2 lakh.

"With a view to push the digital transaction, the RBI has decided not to charge the and transactions. This would help reduce the fees from customers for these transactions," Indian Banks' Association Chairman Sunil Mehta said in IBA's newsletter.

The 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.

To provide an impetus to digital funds movement, the central bank had decided to do away with the processing charges and time-varying charges levied on by the RBI for outward transactions through the RTGS, as also the processing charges for transactions processed in NEFT will be waived by the Reserve Bank of India.

Currently, the RBI "levies minimum charges" on banks for transactions routed through its RTGS and NEFT system.

Banks, in turn, levy charges on their customers.

The RBI has also constituted a high-level committee under IBA Chief Executive V G Kannan to examine ATM charges and fees by banks amid demands for reviewing the levies.

The use of automated teller machines (ATMs) has been growing significantly and there have been persistent demands to change ATM charges and fees.

First Published: Sun, June 30 2019. 15:20 IST
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