Fund transfer through RTGS and NEFT systems have become cheaper from today after the Reserve Bank of India decided on its recent Monetary Policy Meet that it will not impose additional charges on such transactions.
During the meeting, the RBI had also asked banks to pass on the benefits to its customers. 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.
Earlier, the State Bank of India (SBI) used to charge Rs 2.50 for NEFT transactions up to Rs 10,000, Rs 5 for up to Rs 1 lakh, Rs 15 for between Rs 1 lakh and 2 lakh and Rs 25 for transactions up to Rs 2 lakh. When it comes to RTGS, the SBI charges Rs 25 for an amount ranging from Rs 2 lakh to Rs 5 lakh.
ICICI Bank, HDFC Bank and PNB used to charge Rs 2.50 plus applicable GST on an amount of Rs 10,000 in NEFT transactions. For amounts above Rs 10,000 to Rs 1 lakh, these banks charged Rs 5 along with applicable GST, Rs 15 plus GST on amounts between Rs 1 lakh and Rs 2 lakh and Rs 25 plus GST on Rs 5 lakh upwards. Their RTGS charges also began from Rs 25 plus applicable GST.
"With a view to push the digital transaction, the RBI has decided not to charge the RTGS and NEFT transactions. This would help banks reduce the fees from customers for these transactions," Indian Banks' Association Chairman Sunil Mehta said in IBA's newsletter.
The move has come as to encourage digital funds.
Previously, RBI used to levy minimum charges on banks for transactions routed through its RTGS and NEFT system, while the banks, in turn, imposed 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 charges.
tituted 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.