RTGS and NEFT money transfer to cost lesser from today

New Delhi, 01 July (KNN) Funds transfer via Real-Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) systems have become cheaper from today after the Reserve Bank of India (RBI) decided it will not impose any charges on such transactions.

After reviewing various charges levied by it on the member banks for transactions processed in the RTGS and NEFT systems, RBI has asked banks to pass on the benefits to the customers with immediate effect.

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.

The country's largest bank State Bank of India (SBI) charges between Re 1 and Rs 5 for transactions through NEFT and between Rs 5 and Rs 50 for RTGS route.

In a notification earlier The Central Bank asked consumer banks to pass on this benefit to customers, essentially asking banks to NEFT and RTGS transfers free of cost.

Currently, the RBI "levies minimum charges" on banks for transactions routed through its RTGS and NEFT system.

The Central Bank has decided to do away with the processing charges and time-varying charges levied on banks by the RBI for outward transactions through the RTGS, as also the processing charges for transactions processed in NEFT will be waived by the Reserve Bank of India.

The use of automated teller machines (ATMs) has been growing significantly and there have been persistent demands to change ATM charges and fees.