In a latest development and a good news to the public, the RBI has mandated all banks to stop charging savings account customers for NEFT use from January 2020. RTGS and NEFT Charges will finally be free!
Starting January 2020, banks can no longer charge savings bank account holders for online transactions in the NEFT mode of transaction. The Reserve Bank of India (RBI) has now mandated banks to do this through a press release on Friday. In its press release, RBI stated that it is doing this to promote digital payments, the Government of India initiative on cashless transaction and digital India.
RBI Will Do Away With NEFT/RTGS Charges
In its July monetary policy review, RBI had decided to do away with charges for NEFT and RTGS transactions. However, it hadn’t set a date by when banks had to comply. In its July statement. In its July statement it had said, “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.”
NEFT Charges to be Free
The move is welcomed by the mass as currently the public has to bear transaction charges for NEFT and RTGS apart from IMPS despite the promotion of digital payments. Already cash transactions are capped at Rs.2 lakhs and any transaction over and above this limit has to be done digitally through Banking such as NEFT and RTGS. The latest development will bring about a great promotion to encourage the general public to make all transactions digitally through NEFT and RTGS.