Charges on fund transfer through NEFT or RTGS have been removed by the Reserve Bank of India (RBI) to boost online transactions and requested banks to pass on the benefits to customers.
The Real Time Gross Settlement System (RTGS) is used for large instantaneous fund transactions while the National Electronic Funds Transfer (NEFT) System is meant for fund transfers up to Rs 2 lakh.
State Bank of India (SBI) charges from Re 1 to Rs 5 for transfers via NEFT and from Rs 5 to Rs 50 for RTGS route.
After the Monetary Policy Committee’s meeting, RBI stated that it would levy a minimum charge on banks for transactions routed via RTGS and NEFT system for other fund transfers.
The Central Bank 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.”
On the other hand, RBI has also decided to set up a committee to review the fees levied on the use of ATMs as the number of transactions have grown significantly.
Under the chairmanship of the Chief Executive Officer of Indian Banks’ Association (IBA), a new committee will be set-up with all stakeholders to examine the entire gamut of ATM fees and charges.
This Committee is supposed to submit its recommendations in two months of its first meeting, according to RBI Governor Shaktikanta Das.