Online transactions to be cheaper from July 1: The Reserve Bank of India (RBI) has made a major announcement in June 2019. Among all those announcements, one was to remove the charges imposed on the consumer through the Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT). As per the latest instructions by the Reserve Bank of India (RBI), All the banks are directed to withdraw the Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) charges by July 1, 2019. As per RBI, these charges are nothing but a burden which is laid on the customers that too without their consent and on all the digital transactions made by them. RBI has finally taken strict action against the charges taken on the transactions which are processed in the RTGS and NEFT system.
Both the RTGS and NEFT charges vary from bank to bank.
As per the Group Chief Economic Adviser of SBI, Dr Soumya Kunti Ghosh said that the transactions from the NEFT+RTGS channel have increased on a very large scale, previously it was 75.5 trillion in April 14, 2019 and now it has gone to Rs 169 trillion in April 2019 and the decision of RBI to cut these charges will encourage the process of digital fund transfers among the masses.
If someone does any sort of cash transaction through NEFT up to Rs 10,000, then they need to pay a fee of Rs 2.50 and if the transaction is above Rs 10,000 but up to 1 lakh, the consumers need to pay Rs 5 as fees and if the transaction is between Rs 1 lakh to 2 lakh, the consumer needs to pay Rs 15 and if the transaction is above 2 lakh, the consumer needs to pay Rs 25. These charges are imposed by the loaners like State Bank of India, ICICI Bank, Punjab National Bank and Bank of Baroda. On the other hand, HDFC bank never imposes any charge on NEFT but has a fee if the transaction is carried through branches.