Electronic funds transfer made cheaper!
Posted on: 19/Dec/2019 4:32:47 PM
With the Reserve Bank of India taking a major decision that it will not impose additional charges on such transactions during its recent Monetary Policy Meet, fund transfer through RTGS (Real Time Gross Settlement) and NEFT (National Electronic Funds Transfer) systems have become cheaper from yesterday (Thursday, 19th December).
During the above policy review meeting, the Reserve Bank of India advised the banks to pass on the benefits to the customers.
As per the above-mentioned 2 transfer systems, real-time gross settlement (RTGS) system is meant for large-value instantaneous fund transfers. The national electronic funds` transfer (NEFT) system is used for fund transfers of up to Rs 2 lakhs.
SBI
It may be noted that earlier, the State Bank of India (SBI) used to charge Rs 2.50 for NEFT transactions up to Rs 10,000, Rs 5 for up to Rs 1 lakh, Rs 15 for between Rs 1 Lakh and 2 lakhs and Rs 25 for transactions up to Rs 2 lakhs.
As regards RTGS, the SBI charges Rs 25 for an amount ranging from Rs 2 lakhs to Rs 5 lakhs.
ICICI, HDFC & PNB
ICICI Bank, HDFC Bank and PNB used to charge Rs 2.50 plus applicable GST on an amount of Rs 10,000 in NEFT transactions.
For amounts above Rs 10,000 to Rs 1 Lakh, these banks charged Rs 5 along with applicable GST, Rs 15 plus GST on amounts between Rs 1 Lakh and Rs 2 lakhs and Rs 25 plus GST on Rs 5 lakh upwards. Their RTGS charges also began from Rs 25 plus applicable GST.
Indian Banks` Association Chairman Sunil Mehta said in IBA`s newsletter:
"With a view to push the digital transaction, the RBI has decided not to charge the RTGS and NEFT transactions. This would help banks reduce the fees from customers for these transactions,"
Thus, this move has come to encourage digital funds!
