RBI Makes Online Transfers Free by Removing Charges on NEFT, RTGS

The above charges are applicable as per transaction basis and attracts Goods and Services Tax (GST) at the rate of 18 percent.

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:

Country's largest bank SBI charges between Re 1 and Rs 5 for transactions through NEFT and between Rs 5 and Rs 50 forRTGSroute.

In its statement on developmental andregulatory policiesafter the Monetary Policy Committee's meeting, theRBIsaid it levies minimum charges on banks for transactions routed throughRTGSandNEFT systemfor 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 theRBIfor 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, theRBIhas 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.