New Delhi: The Reserve Bank of India on Thursday removed charges on fund transfers through RTGS and NEFT routes in order to boost digital transactions. It also asked banks to pass on the benefits to customers.
The Real Time Gross Settlement System (RTGS) is meant for large-value instantaneous fund transfers while the National Electronic Funds Transfer (NEFT) System is used for fund transfers up to Rs. 2 lakh.
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.
In its statement on developmental and regulatory policies after the Monetary Policy Committee’s meeting, the RBI said it levies minimum charges on banks for transactions routed through RTGS and NEFT system for other fund transfers.
Banks, in turn, levy charges on their customers.
“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, the RBI has 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.
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