After the recent statement by the RBI which now on will make NEFT and RTGS free with effect from July. Here is how you as an individual and economy at large will benefit from the move:
But before that we will like to state that the NEFT and RTGS that are levied on customers are the charges levied by RBI for executing and processing transactions via NEFT and RTGS platform will be made free.
In its notification, the central bank said, In order to provide an impetus to digital funds movement, it has been decided that with effect from July 1, 2019, processing charges and time-varying charges levied on banks by Reserve Bank of India (RBI) for outward transactions undertaken using the RTGS system, as also the processing charges levied by RBI for transactions processed in NEFT system will be waived by the Reserve Bank." Here's how the RBI decision will impact you, economy:
1. The waiver on NEFT and RTGS transaction is expected to give a boost to such transactions from bank customers who till date were not enthusiastic about the transactions. And is largely to promote digital transactions in the Indian economy.
2. The transaction cost will be reduced and there will be rendered simplification in money transfer.
3. Once, the digital transfer trough NEFT and RTGS gains pace, there will be a decreased orientation towards money transfer via traditional modes including DD, cheques and cash.
4. Digital transactions will be promoted to levels of USD 135.2 billion in 2023 from USD 64.8 billion currently.
5. Notably, the salaried could execute such digital transfers for free but the new directive will benefit all of the bank customers regardless of the account they maintain with the bank or whether they held their account at the private or public bank. Also, the move will significantly benefit trades for whom each penny counts.