RBI Removes NEFT and RTGS Charges
In a move to boost digital transactions, the Reserve Bank of India (RBI) on Thursday removed NEFT and RTGS charges from transactions.
National Electronic Fund Transfer (NEFT) is a facility customers use to transfer money online. Once a person initiates money transfer through this option, the amount reaches the other person within 2 hours.Though there is no maximum or minimum amount on a transaction, some banks put a cap. SBI charges Rs. 5 plus GST on transactions between Rs. 10,000 and Rs. 1 lakh. The charges for a transaction between Rs. 1 lakh and Rs. 2 lakh is Rs. 15 plus GST. Transactions for more than Rs. 2 lakh it is Rs. 25 plus GST.
RTGS stands for Real Time Gross Settlement and this facility is used to transfer more than Rs. 2 lakh. For RTGS transactions, SBI charges Rs. 25 plus GST for a transactions between Rs. 2 lakh and Rs. 5 lakh. For transactions above Rs. 5 lakh the SBI charges Rs. 50 plus GST. In order to boost digital transactions, the Reserve Bank of India (RBI) on Thursday removed NEFT and RTGS charges from transactions.
RBI has asked banks to inform about the same to customers. These decisions were taken by RBI's Monetary Policy Committee. Apart from this, RBI is also mulling changes in ATM transaction fees. The apex bank said there have been demands to make some changes and hence a committee has been set up. The committee will submit a report within two months.