Fund transfer to cost less via RTGS, NEFT
Mumbai: The Reserve Bank of India on Tuesday said that it would abandon all the charges which the customer pays on fund transfer through popular RTGS and NEFT systems from July 1 and also asked the banks to pass on these benefits to their customers from the same day.
The NEFT (National Electronic Fund Transfer) is used for the transfer of funds upto the limit of Rs. 2 lakh and The RTGS ( Real Time Gross Settlement System is meant for large value Fund Transfer.
The largest bank of India which is SBI chares from Rs. 1 to 5 for NEFT and charges Rs. 5 to 50 for fund transfer through RTGS.
After the bi-monthly monetary policy review, following up on the announcement made on June 6 the RBI said it had reviewed various charges levied by it on the member banks for transactions processed in the RTGS and NEFT systems.
In order to provide an incentive to digital funds movement, the central bank (RBI) further said it has been decided that with effect from July 1, 2019, processing charges and time-varying charges levied on banks by RBI for outward transactions through the RTGS, as also the processing charges for transactions processed in NEFT will be suspended by the Reserve Bank.
RBI: "The banks are advised to pass on the benefits to their customers for undertaking transactions using the RTGS and NEFT systems with effect from July 1, 2019,"
The Reserve Bank imposes "minimum charges" on banks for transactions routed through its RTGS and NEFT, and banks, in turn, levy charges on their customers.