The Reserve Bank of India Thursday said it has discarded charges on fund transfers through RTGS and NEFT courses to help digital transactions and requested that banks pass on the advantages to clients.
RBI Removes Charges On RTGS, NEFT Transactions
The Real Time Gross Settlement System (RTGS) is intended for large value immediate fund transfers while the National Electronic Funds Transfer (NEFT) System is used for fund transfers up to Rs 2 lakh.
Nation’s biggest bank SBI charges between Re 1 and Rs 5 for transfers through NEFT and between Rs 5 and Rs 50 for RTGS course.
In its announcement on formative and regulatory policies after the Monetary Policy Committee’s meeting, the RBI said it demands least charges on banks for transfers steered through RTGS and NEFT system for other fund transfers. Banks, thusly, demand charges on their clients.
So as to give a force to digital funds movement, it has been chosen to get rid of the charges demanded by the RBI for transfers handled in the RTGS and NEFT systems, it said.
“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 said.
In the interim, the RBI has chosen to set up an advisory group to audit the charges exacted on the usage to ATMs as the use by the open has been developing altogether.
“There have, however, been persistent demands to change the ATM charges and fees,” the RBI noted.
So as to address these, it has been chosen to set up a board including all partners, under the chairmanship of the Director Executive Officer, Indian Banks’ Association (IBA), to inspect the whole extent of ATM charges and expenses.
The Committee is relied upon to present its suggestions inside two months of its first meeting, RBI Governor Shaktikanta Das told correspondents here. The organization and terms of reference of the advisory group will be issued within seven days, the national bank said.