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RBI Eliminates Charges On RTGS & NEFT Transactions, ATM Charges To Be Reviewed
RBI Eliminates Charges On RTGS & NEFT Transactions, ATM Charges To Be Reviewed: Details, Highlights
The Reserve Bank of India on 6th June 2019, has eliminated the charges imposed on money transactions & transfers through RTGS and NEFT.
RBI has also set up a Committee to review the charges levied on the use of ATMs by the public.
RBI decision came in a bid to measures economy and deepen and broaden the financial markets.
Currently, RBI levies minimum charges on banks for RTGS and NEFT transactions of fund transfers and Banks in turn levy charges on their customers for the same.
Now, RBI has asked banks that it will have to deliver this benefit to the customers.
The central bank will issue the guidelines and instructions in this regard to banks on 8th June by official notice.
About RTGS and NEFT
RTGS and NEFT are the modes of transferring funds online through mobile banking or internet banking.
RTGS and NEFT are the electronic payment methods that allow the transfer of funds among different banks and are maintained by the RBI and are used within India.
RTGS 'Real Time Gross Settlement'- The RTGS is used for instantaneous fund transfers of large-value.
NEFT ‘National Electronic Funds Transfer’- The NEFT System is used for transferring funds up to Rs 2 lakh. The NEFT operates in hourly batches, that is, the settlement of transfer of funds takes place on an hourly basis.
