Banks will stop charging you for NEFT transactions from 2020!

The RBI has also proposed to permit all authorised payment systems and instruments for linking with National Electronic Toll Collection (NETC) FASTags. 

Published: 08th November 2019 05:22 PM  |   Last Updated: 08th November 2019 05:22 PM   |  A+A-

The country's largest bank, which has about 25 percent of market share,  also announced a 20 per cent reduction in RTGS and NEFT transactions for customers transacting through a bank branch. As for IMPS transactions, there will be no charges for fund transfer upto Rs 1,000 through a bank branch. (Photo | Sindhu Chandrasekaran, EPS)

For representational purposes. (Photo | Sindhu Chandrasekaran, EPS)

By Online Desk

Starting January 2020, you will not be charged for NEFT transactions. The government's latest move is aimed at boosting digital payments.

The Reserve Bank of India (RBI) has directed banks not to charge savings bank account customers for online NEFT transactions. 

The central bank has also proposed to permit all the authorised payment systems and instruments (non-bank PPIs, cards and UPI) for linking with National Electronic Toll Collection (NETC) FASTags. 

"Going forward, this will facilitate the use of FASTags for parking, fuel etc. payments in an interoperable environment," said the top bank in a statement.

Highlighting the growth of digital payments in India, the top bank said, "Digital payments constituted a high 96% of total non-cash retail payments during the period of October 2018 to September 2019. During the same period, the NEFT and UPI systems handled 252 crore and 874 crore transactions with year on year growth of 20% and 263%, respectively."

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