RBI has decided to do away with charges on NEFT and RTGS transactions and in turn asked banks to pass on the benefit to customers. This implies that in near future either such payment modes will become free for customers or charges for them shall be reduced considerably. The announcement has been made in the Statement on Developmental and Regulatory Policies released today as part of the RBI's monetary policy review.
The apex bank charges bank some minimal fees for transactions routed via its RTGS or real time gross settlement system that enables high-value real-time fund transfers and the National Electronic Funds Transfer (NEFT) System facilitating other fund transfers. In turn, banks charge their customers for such RTGS and NEFT fund transfers.
The decision has been taken to push digital transactions and for the same instructions will be issued to banks within a week's time.