RBI slashes charges for NEFT transactions

Updated: Saturday, July 14, 2012, 11:45 [IST]

In a move to promote cashless transactions, the Reserve Bank of India has slashed charges that banks can levy on customers for transfer of funds through National Electronic Funds Transfer (NEFT).

The RBI said that banks can levy not more than Rs 2.50 (exclusive of service tax) for funds transfer upto Rs10,000.

However, charges for transfers beyond Rs 10,000 limit would remain unchanged, it said. Charges for electronic transfer of fund beyond Rs 10,000 but less than Rs 1 lakh will be a maximum of Rs 5 per transaction.

Electronic transfer of funds beyond Rs 1 lakh to less than Rs 2 lakh, RBI has retained maximum charges of Rs 15 per transaction, for transactions beyond Rs 2 lakh, the maximum charge will continue to be Rs 25 per transaction from August.

Explaining the revision, the Reserve Bank has stated that NEFT transactions have grown exponentially in the recent years. It is desirable that the benefits accruing on account of increasing volume of transactions are passed on to the customers in the form of lower charges.

This would also incentivise greater use of the electronic payment system. Further, it is considered necessary to provide the large number of people being covered under the financial inclusion programme with an efficient and affordable remittance mechanism like the NEFT.

These new rates will be applicable from August 1, 2012. So, go online, go cashless.

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