No charges on RTGS, NEFT transfers from July 1: RBI
The Reserve Bank of India (RBI) has decided to waive off all charges on RTGS and NEFT system fund transfers from July 1, 2019. Announcing its decision, the central bank has asked banks to pass on the benefits to their customers for RTGS and NEFT transfers from 1 July itself. To boost digital transactions, RBI announced waiver of these charges last week. Here's more.
A little about RTGS and NEFT fund transfer systems
RTGS (Real Time Gross Settlement System) and NEFT (National Electronic Funds Transfer) System are the two main modes of funds transfer between banks in India. Through the RTGS route, large-value fund transfers of Rs. 2 lakh or above can be done instantaneously in the real-time, while the NEFT system if meant for transferring of funds up to Rs. 2 lakh.
RBI levies charges on banks for RTGS, NEFT transactions
Following the Monetary Policy Committee's meeting earlier, the RBI, in a statement on developmental and regulatory policies, said that minimal charges are levied by it on banks for transactions through RTGS and NEFT systems. These charges are, in turn, levied by banks on their customers.
Why did RBI decide to waive off RTGS, NEFT charges?
Last week, RBI said it will waive off all charges levied by it on banks for RTGS and NEFT system transactions in order to give a boost to the digital funds movement. "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 stated at the time.
RBI also sets up high-level panel to review ATM charges
Separately, RBI also constituted a panel for reviewing the charges and fees levied by banks on the use of ATMs. The decision to examine these charges has been taken as the usage of ATMs by the public has grown significantly in recent years. To address the same, RBI reportedly set up a high-level committee under Indian Banks' Association (IBA) Chief Executive Officer, VG Kannan.
There have been persistent demands to change ATM charges: RBI
The RBI noted, "There have...been persistent demands to change the ATM charges and fees." The central bank's Governor, Shaktikanta Das, has said that the high-level committee for reviewing ATM charges is expected to submit its recommendation within two months after its first meeting.