In a bid to promote digital transactions, RBI has abolished charges levied on transactions processed through Real Time Gross Settlement System (RTGS) and National Electronic Funds Transfer (NEFT). Currently, RBI levies a minimum charge on banks for transactions that are routed through NEFT and RTGS and banks in turn levy charges on customers.
Until now, for RTGS transactions between Rs 2-5 lakh, a maximum fee of Rs 30 was charged by RBI and a maximum of Rs 55 is charged for transactions above Rs 5 lakh. However, the actual fee depends on the time of the day when a user initiates transactions. Banks could decide to charge any amount not exceeding the rates charges by RBI.
For NEFT transactions originating at bank branches, maximum of Rs 2.50 (+GST) was charged for transactions up to Rs 10,000. For transactions above Rs 10,000 up to Rs 1 lakh, a maximum of Rs 5 (+GST), and Rs 15 (+GST) for transactions above Rs 1 lakh and up to Rs 2 lakh was charged. For transactions above Rs 2 lakh, a maximum of Rs 25(+GST) was charged.
These charges have now been scrapped.
“In the area of payment and settlement systems, it has been decided to do away with the charges levied by the Reserve Bank for transactions processed in the RTGS and NEFT systems in order to provide an impetus to digital funds movement. 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," RBI said in a statement.
On May 28, RBI had also announced extension of the time window for RTGS transactions by one and a half hours. Previously the timing for RTGS transactions was till 4:30 pm. This has now been extended to 6 pm. These new timings came into effect from June 1.
As part of this announcement, RBI also said that the time-varying charges for transactions under RTGS from 1 pm to 6 pm shall be Rs 5 per outward transaction, while transactions from 8 am to 11 am will have no charges. From 11 am to 1 pm the charges will be Rs 2 while after 6 pm the transaction charges will be Rs 10.