RBI Makes Online Transfers Free by Removing Charges on NEFT, RTGS
Reserve Bank of India (RBI) in its bi-monthly meet of the Monetary Policy Committee (MPC) on Thrusday, decided to remove all charges levied on Real Time Gross Settlement System (RTGS) and National Electronic Funds Transfer (NEFT) System.
The Reserve Bank levies minimum charges on banks for transactions routed through its Real Time Gross Settlement System (RTGS) meant for large-value instantaneous fund transfers and the National Electronic Funds Transfer (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 Reserve Bank for transactions processed in the RTGS and NEFT systems.
RTGS is a payments system in which transactions – or wire transfers – are processed continuously throughout applicable business hours. On the other hand, in case of NEFT or national electronic funds transfer, the transactions are received up to a particular time are processed in batches. RTGS is meant for transactions of Rs. 2 lakh and above. It enables instant transfer of funds as per applicable timings.
Below are SBI’s RTGS charges:
NEFT is a payment system facilitating funds transfers from one bank account to another. One can access this service either by using Internet banking or by visiting the bank branch. (Not all bank branches are enabled with this service.)
Once you initiate the transfer, the money reaches the beneficiary account within hours. There is no limit on the minimum or maximum amount you can transfer, however, individual banks may put restrictions on the per transaction amount.
Currently NEFT charges of the State Bank of India (SBI) are as follows:
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.
Meanwhile, the RBI has decided to set up a committee to review the charges levied on the use to ATMs as the usage by the public has been growing significantly.
“There have, however, been persistent demands to change the ATM charges and fees,” the RBI noted.
In order to address these, it has been decided to set up a committee involving all stakeholders, under the chairmanship of the Chief Executive Officer, Indian Banks’ Association (IBA), to examine the entire gamut of ATM charges and fees.
The Committee is expected to submit its recommendations within two months of its first meeting, RBI Governor Shaktikanta Das told reporters here. The composition and terms of reference of the committee will be issued within a week, the central bank said.
You May Also Like : Inditect Tax committee of ICAI issued Technical Guide on GST Audit