In a bid to boost online transactions, the RBI announced that it is waiving off the charges levied on NEFT and RTGS transactions effective July 1, 2019. All the banks have been directed to pass on the benefits to their customers from the effective date.
The Real Time Gross Settlement System (RTGS) is a means for large-value instantaneous fund transfers while the National Electronic Funds Transfer (NEFT) System is used for fund transfers up to Rs. 2 lakh. Currently, banks charge an amount between Rs 1 to Rs 5 for transactions done through NEFT. Transactions that are done through RTGS attract a charge between Rs 5 to Rs 50. It also extended the timings of RTGS transaction recently driving it up till 6:00 pm instead of 4:30 pm. “It has been decided that with effect from July 1, 2019, processing charges and time-varying charges levied on banks by Reserve Bank of India (RBI) for outward transactions undertaken using the RTGS system, as also the processing charges levied by RBI for transactions processed in NEFT system will be waived by the Reserve Bank,” the central bank said.
These decisions came after a bi-monthly monetary policy review by the bank. RBI has also decided to set up a committee to review the charges levied on ATM transactions. “There have, however, been persistent demands to change the ATM charges and fees,” the RBI noted. The committee comprises of all stakeholders, under the chairmanship of the chief executive officer, Indian Banks’ Association (IBA).