Bhubaneswar: As part of its ongoing strategy to promote digital transactions, the Reserve Bank of India (RBI) on Thursday announced for waiving off charges on National Electronic Funds Transfer (NEFT) or Real Time Gross Settlement System (RTGS). Such decision was taken during RBI’s bi-monthly monetary policy (MPC) meeting.
“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,” the central bank said in its release.
The State Bank of India (SBI) currently charges between Re 1 and Rs 5 for NEFT transactions and between Rs 5 and Rs 50 for RTGS.
"Another brick in the ongoing construction of and incentive-to-use a rapidly growing digital payments ecosystem. Makes it cheaper to transfer funds electronically &, with an audit trail, a further reduction of the black economy's "market share," tweeted BJP national vice-president Baijayant Panda.
Keeping in view the significant use of Automated Teller Machines (ATMs), the RBI has also decided to set up a Committee 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.
"Welcome the people friendly decision by RBI to revoke transaction charges levied on RTGS and NEFT transactions,this will further give impetus to a Digital India. Reduction in Repo rates will ease people's life by making loans more affordable to MSMEs, exporters & home buyers," tweeted Union Minister Dharmendra Pradhan.