Source : The Times of India, Last updated : 8 Nov 2019,4:03 pm

No NEFT charges for savings account holders from January 2020, RBI tells banks

No NEFT charges for savings account holders from January 2020, RBI tells banks
NEW DELHI: The Reserve Bank of India (RBI) on Friday mandated banks "not to charge savings bank account customers for online transactions in the NEFT (National Electronic Funds Transfer) system with effect from January 2020.


The Reserve Bank had earlier said that it had done away with charges on NEFT and RTGS (Real-time gross settlement) transactions.


In a statement, the central bank also proposed to "operationalise the acceptance development fund to increase acceptance infrastructure with effect from January."


"In order to provide an impetus to digital funds movement, it has been decided to do away with the charges levied by the Reserve Bank for transactions processed in the RTGS and NEFT systems. Banks will be required, in turn, to pass these benefits to their customers. Instructions to banks in this regard will be issued within a week," the central bank stated.


The RTGS system is meant for large-value instantaneous fund transfers, while the NEFT system is used for fund transfers of up to Rs 2 lakh.
Go to Source