The Reserve Bank of India’s in an advisory and planned to waive off charges on National Electronic Funds Transfer (NEFT) and Real Time Gross Settlement System (RTGS). With the mandate of the government moving towards digital push for digital transactions, and the costs and charges associated with digital payments have witnessed a steady downswing in the last few years. Banks normally charged anywhere between Rs 30 and Rs 55 for a single RTGS transaction, while NEFT charges could go up to Rs 20.
This waiver by RBI takes away the costs associated with fund transfers via NEFT and RTGS at par with other alternatives such as the UPI. Several banks had already waived off NEFT charges for internet banking transactions. It is expected that now even more customers would prefer to transfer funds via NEFT or RTGS as the method is faster compared to offline alternatives such as cheque payments or demand drafts.
“There have been persistent demands to change the ATM charges and fees,” RBI noted. “In order to address these, it has been decided to set up a committee involving all stakeholders, under the chairmanship of the chief executive officer, Indian Banks’ Association (IBA), to examine the entire gamut of ATM charges and fees.” The transfer of payment upto Rs.2 lakh can happen through RTGS, unlike UPI which has a transaction limit of Rs 1 lakh per day. Also, this should be seen in continuity with the central bank’s decision last month to extend RTGS transactions’ cut-off time from 4:30 p.m. to 6 p.m. on working days.
With the RBI waiving the fees, an RTGS transaction is set to become as convenient and fast as UPI even when you transfer large amounts. “The committee is expected to submit its recommendations within two months of its first meeting.