Fund transfer via RTGS, NEFT to get cheaper soon

New Delhi: Fund transfer via RTGS and NEFT is set to get cheaper from Monday onwards. This was after the Reserve Bank of India (RBI) on Sunday decided it will not impose any charges on such transactions.

The RBI’s decision will be applicable from July 1. Furthermore, the central bank also asked banks to pass on the benefits to customers from the same day.

The real-time gross settlement (RTGS) system is meant for large-value instantaneous fund transfers. Meanwhile, the national electronic funds transfer (NEFT) system is used for fund transfers of up to Rs 2 lakh.

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The country’s largest bank SBI charges between Re 1 and Rs 5 for transactions through NEFT and between Rs 5 and Rs 50 for RTGS route. To provide an impetus to digital funds movement, the central bank had decided to do away with the processing charges and time-varying charges levied on banks by the RBI.

Currently, the RBI “levies minimum charges” on banks for transactions routed through its RTGS and NEFT system. Banks, in turn, levy charges on their customers.

The use of automated teller machines (ATMs) has grown significantly over the years. There have been persistent demands to change ATM charges and fees.

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