New Delhi: The Reserve Bank of India on Thursday said it will not levy charges on NEFT (National Electronic Funds Transfer) and RTGS (Real Time Gross Settlement System) transactions any more and asked banks to pass on the benefit to customers.
The central bank said it has removed the charges to give a fillip to digital transactions.
NEFT is used for fund transfers up to Rs 2 lakh and RTGS is meant for large-value instantaneous fund transfers.
The RBI levies minimum charges on banks for transactions routed through NEFT and RTGS. Banks, in turn, levy charges on their customers.
“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,” the central bank said in a statement on Developmental and Regulatory Policies after the Monetary Policy Committee meeting in Mumbai.
Instructions to banks in this regard will be issued within a week, said the RBI.