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Instant fund transfers to get cheaper from Monday

The Reserve Bank of India has announced that no charges shall be imposed on such transactions from July 1.

Published: 01st July 2019 10:01 AM  |   Last Updated: 01st July 2019 10:12 AM   |  A+A-

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NEW DELHI:  There’s good news for banking users who rely on RTGS, NEFT to transfer fund. Come Monday, and fund transfer through these systems would get cheaper. The Reserve Bank of India has announced that no charges shall be imposed on such transactions from July 1. The RBI levies minimum charges on banks for transactions routed through its Real-Time Gross Settlement system (RTGS) for large-value instantaneous fund transfers, and National Electronic Funds Transfer (NEFT) system for fund transfers of up to Rs 2 lakh.

The banks, in turn, levy charges ranging from Rs 1 to Rs 50 per transaction on their customers. The country’s largest bank, State Bank of India, charges between Rs 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 RBI had earlier in the month asked banks to pass on the benefits to customers from the same day.The RBI-appointed Nandan Nilekani-led committee report for deepening digital payments, had earlier recommended that banks incentivise digitisation of payments by not charging their customers and small merchants on digital transactions.

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