SME Times News Bureau | 09 Nov, 2019
The Reserve Bank of India (RBI) has directed banks not to charge savings account holders for NEFT with effect from January 2020.
The
National Electronic Funds Transfer (NEFT) is an electronic funds
transfer system maintained by the RBI, to transfer funds from one bank
account to another. Money transfer can be made by an individual or
company to an individual or company's bank account with any bank that is
a member of the NEFT scheme, according to the RBI .
The RBI said earlier that it had done away with charges on NEFT and RTGS transactions.
"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.
Instructions to banks in this regard will be issued within a week," the
central bank said in a statement.
RTGS is meant for large-value instantaneous fund transfers while the NEFT is used for fund transfers up to Rs 2 lakh.
