Published On : Fri, Nov 8th, 2019

RBI Asks Banks to Waive Charges on NEFT Transactions From January 2020

New Delhi: In a bid to boost the digital transactions, the Reserve Bank of India has directed all the banks to waive the charge imposed on savings bank account customers performing online transactions through NEFT or National Electronic Funds Transfer system with effect from January 2020, stated a report.

An official statement from the RBI, as quoted by Live Mint, read: “Reserve Bank’s endeavour has been to establish state of the art payment systems that are efficient, convenient, safe, secure and affordable. The efforts have resulted in a rapid growth in the retail digital payment systems.”

The RBI maintains two types of inter-bank transfer systems namely RTGS and NEFT. The RTGS is meant for large-value instantaneous fund transfers with a lower limit of Rs 2 lakhs and no upper limit. the NEFT, on the other hand, is used for fund transfers up to Rs 2 lakh. While funds can be transferred in a continuous, individual settlement through RTGS, the funds transferred through the NEFT are settled on a deferred basis in batches.