Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
Powered by cricketnext logo
»
2-min read

RBI Waives off RTGS, NEFT Charges to Boost Digital Movement of Funds

Currently, RBI levies minimum charges on banks for transactions routed through RTGS and NEFT systems. Banks, in turn, levy charges on their customers.

Trending Desk

Updated:June 7, 2019, 8:13 AM IST
facebookTwitterskypewhatsapp
RBI Waives off RTGS, NEFT Charges to Boost Digital Movement of Funds
Image for representation (Reuters)
Loading...

The Reserve Bank of India (RBI) on Thursday announced that it is removing all charges on money transfers done through the Real-Time Gross Settlement (RTGS) and the National Electronic Funds Transfer (NEFT) modes.

Till now, banks normally charged anywhere between Rs 30 and Rs 55 for a single RTGS transaction, while NEFT charges could go up to Rs 20.

Last month, RBI had extended RTGS timings from 4:30 pm to 6pm, with effect from 1 June. It had also announced that customers using RTGS during the time windows of 11am-1pm and 1pm-6pm will have to pay any additional fee of Rs 2 and Rs 5, respectively, over and above the fixed processing charge.

However, the central bank scrapped all such charges on Thursday and asked the banks to pass on the benefits to the customers soon.

“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 said in a statement.

Currently, RBI levies minimum charges on banks for transactions routed through RTGS and NEFT systems. Banks, in turn, levy charges on their customers.

RTGS and NEFT mainly differ from each other on two fronts. One, there is no ceiling on the minimum or maximum amount that can be transferred through NEFT. You can even transfer Re 1. However, a minimum of Rs 2 lakh must be transferred through the RTGS service. Two, in RTGS, money transfer is immediate, whereas NEFT transactions are settled in hourly batches. It means that if you initiate a NEFT transfer after the settlement time of one batch, you have to wait for the next settlement time for the transaction to be processed.

RBI has also decided to set up a committee to review the charges levied on the usage of ATMs. "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 committee is expected to submit its recommendations within two months of its first meeting. The composition and terms of reference of the committee will be issued within a week,” it further added.

Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwitterskypewhatsapp
Most Active
Company Price Change %Gain
Yes Bank 109.30 -5.90
Indiabulls Hsg 609.80 -6.86
Reliance 1,281.00 -0.10
IndusInd Bank 1,409.00 0.67
HDFC Bank 2,417.25 -0.20
Company Price Change %Gain
Yes Bank 109.30 -5.94
Indiabulls Hsg 609.70 -6.95
Infosys 750.65 1.38
Reliance 1,282.55 0.08
Godrej Consumer 671.25 2.07
Top Gainers
Company Price Change %Gain
Vedanta 168.10 2.47
Coal India 260.35 1.98
BPCL 385.55 1.96
Power Grid Corp 197.80 1.93
ICICI Bank 422.15 1.92
Company Price Change %Gain
Vedanta 168.00 2.47
Coal India 260.35 2.02
ICICI Bank 422.20 1.88
Power Grid Corp 197.70 1.88
Infosys 750.65 1.38
Top Losers
Company Price Change %Gain
Indiabulls Hsg 609.80 -6.86
Yes Bank 109.30 -5.90
Maruti Suzuki 6,439.00 -2.17
Hindalco 189.95 -1.89
Asian Paints 1,380.05 -1.56
Company Price Change %Gain
Yes Bank 109.30 -5.94
Maruti Suzuki 6,437.05 -2.20
Asian Paints 1,380.40 -1.53
Sun Pharma 378.40 -1.11
HDFC 2,154.30 -0.79

Live TV

Loading...
Countdown To Elections Results
  • 01 d
  • 12 h
  • 38 m
  • 09 s
To Assembly Elections 2018 Results