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RTGS, NEFT transactions to cost less from July 1


MUMBAI: The Reserve Bank of India on Tuesday stated it is going to waive all charges on fund transfer via popular RTGS and NEFT methods from July 1 and requested banks to pass on the benefits to consumers from the similar day.

The Real Time Gross Settlement System (RTGS) is supposed for large-value immediate fund transfers whilst the National Electronic Funds Transfer (NEFT) device is used for fund transfers of as much as Rs 2 lakh.


Country's largest bank SBI charges between Re 1 and Rs five for transactions via NEFT and between Rs five and Rs 50 for RTGS route.

Following up at the announcement made on June 6 after the bi-monthly financial coverage assessment, the RBI stated it has reviewed the more than a few charges levied by it at the member banks for transactions processed in the RTGS and NEFT methods.

RBI eliminates charges on NEFT, RTGS transactions

The Reserve Bank of India (RBI) on Thursday determined not to levy charges on RTGS and NEFT transactions. In order to provide an impetus to virtual finances movement, it has been determined to get rid of the charges levied by the Reserve Bank for transactions processed in the RTGS and NEFT methods," the RBI notification read.


In order to provide an impetus to virtual finances movement, the central bank further stated it has been determined that with impact from July 1, 2019, processing charges and time various charges levied on banks by RBI for outward transactions in the course of the RTGS, as additionally the processing charges for transactions processed in NEFT will be waived by the Reserve Bank.


"The banks are prompt to pass on the benefits to their consumers for enterprise transactions using the RTGS and NEFT methods with impact from July 1, 2019," it stated.


The Reserve Bank levies "minimum charges" on banks for transactions routed via its RTGS and NEFT, and banks, in turn, levy charges on their consumers.




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