Thursday, August 13, 2020
Home Business RBI Removes NEFT, RTGS Payment Charges to Push Digital Transactions

RBI Removes NEFT, RTGS Payment Charges to Push Digital Transactions

The NEFT system provides for batch settlements at hourly intervals

In a bid to boost digital fund transfer systems, the Reserve Bank on Thursday said that it will remove charges levied on transactions conducted through Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT).

The NEFT system provides for batch settlements at hourly intervals, while RTGS transfers funds from one bank to another on a “real time” and on “gross” basis. Introduced in 2004, RTGS settles all inter-bank payments and customer transactions above Rs 2 lakh.

Both are popular financial transaction systems. Currently, banks charge between Rs 30-55 on RTGS and Rs 2-25 on NEFT fund transfer.

Announcing the plan on the sidelines of the second monetary policy decision, RBI Governor Shaktikanta Das said: “In the area of payment and settlement systems, it has been decided to do away with the charges levied by the Reserve Bank for transactions processed in the RTGS and NEFT systems in order to provide an impetus to digital funds movement.”

RBI, NEFT, RTGS
The Reserve Bank on Thursday said that it will remove charges levied on transactions conducted through Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT). Pixabay

“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.”

Also Read- Syria Uses Familiar Tactic in Rebel Idlib: Bombing Civilians

The Confederation of All India Traders (CAIT) welcomed the move calling it progressive and said it would encourage digital payments by the business community. (IANS)

STAY CONNECTED

18,956FansLike
362FollowersFollow
1,781FollowersFollow

Most Popular

People Move To Reading And Writing During Lockdown

With a deeply-engaged community of close to 3 million users in India, who spend more than 37 minutes daily reading, writing, and engaging on...

BlareMob – A New Music Sensation

Influenced by the music scene in international circuits like Miami, Ibiza, and Barcelona, Delhi based group, BlareMob, launched their latest offering that has six...

An Unique Experience Of Diverse Asia

A kaleidoscopic journey across Bali, Hong Kong, Kyrgyzstan, Myanmar, Thailand, and Vietnam captures the diverse landscapes, textures, and people of Asia. The exhibit is...

Twitter Tests New Feature for Automatic Translation of Tweets

Twitter has kicked off a test with a small group of users across iOS and Android in Brazil that automatically translates tweets that are...

Facebook Removes More Adult, Violent Content on Instagram

Facebook has removed more pieces of content related to adult nudity and sexual activity along with violent and graphic content on Instagram in the...

TikTok Secretly Collects Data in Violation of Google Policies: Report

TikTok secretly collected device data for months via its Android app using a technique that Google prohibits developers from using without consent of users,...

Here’s How You Can Avoid Smudging of Makeup Under a Mask

With the safety at the top of your mind hygiene rituals are replacing beauty routines, and wearing a face mask has become the new...

Here are Some Vaastu Tips to Help You Gain Good Health

By Puja Gupta A few changes in the Vaastu of your house can help you gain good health, even at a time when you might...

Recent Comments