With an aim to encourage digital transfer of funds, the Reserve Bank has waived off all charges for transactions using National Electronic Funds Transfer – NEFT and Real Time Gross Settlement – RTGS systems.
RBI has advised banks to pass on the benefits to their customers with effect from 1st July, 2019. While announcing the Second Bi-monthly Monetary Policy last week, RBI has issued a Statement on Developmental and Regulatory Policies, mentioning that it was planning to waive off these charges.
The Reserve Bank levies minimum charges on banks for transactions routed through its RTGS and NEFT System. RTGS is meant for large-value instantaneous fund transfers while NEFT System is used for fund transfers up to 2 lakh rupees.