RBI to do away with charges on online money transfer
The Reserve Bank of India Monetary Policy Committee on Thursday decided to do away with charges levied on RTGS and NEFT transactions, the netbanking facilities that allow individuals, companies and firms to transfer funds from one bank to another. Banks will be required to pass this benefit to their customers.
“In order to provide an impetus to digital funds movement, it has been decided to do away with the charges levied by the Reserve Bank for transactions processed in the RTGS and NEFT systems. 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 RBI said in the monetary policy statement.
So far the central bank levied minimum charges on banks for transactions routed through its Real Time Gross Settlement (RTGS) meant for large-value instantaneous fund transfers and National Electronic Funds Transfer (NEFT) for other fund transfers. Banks, in turn, levy charges on their customers
Broadly banks allow you to electronically transfer money, through NEFT, RTGS and immediate payment service (IMPS). Through NEFT, you can send money during the bank’s working hours. Since the fund transfer happens in batches, there can be a delay in money transfer.
RTGS happens in real time and gross basis and is meant for high-value transactions, minimum 2 lakh. Recently, the apex bank increased the timing for RTGS from 4:30 pm to 6 pm. So far the cost of transaction through RTGS dependent on the time of transaction and ranged from Rs 2-Rs 10. In case of NEFT the fee was between 5 and 15 depending on the amount. Now you will not have to pay these charges.
The RBI meeting, first after the Lok Sabha elections, also decided to set up a committee involving all stakeholders, under the chairmanship of CEO Indian Banks’ Association (IBA), to examine the entire gamut of ATM charges and fees. The committee will submit its recommendations within two months of its first meeting