The Reserve Bank of India (RBI) order of abolishing its charges on National Electronic Funds Transfer (NEFT) and Real Time Gross Settlement System (RTGS) online money transfer will come into effect from today.
The central bank levies minimum charges on banks for transactions routed through its RTGS meant for the large-value instantaneous fund transfers and NEFT Systems for other fund transfers.
This move by will make money transfer through RTGS and NEFT cheaper. The central bank has asked banks to pass the benefits in this regard to their customers with immediate effect.
In order to provide momentum to the digital funds’ movement, the central bank has further decided that with effect from today, processing charges and time-varying charges levied on banks by RBI for outward transactions through the RTGS, also the processing charges for transactions processed in NEFT will be waived.
The central bank had earlier extended the RTGS time window meant for customer transactions (initial cut-off) from 4.30 pm to 6 pm.