In a bid to promote digital transactions, the Reserve Bank of India has taken yet another step and this time it comes as a relief for savings bank account holders who beginning January 1, 2020 will not be charged for NEFT transfer. For the same, the Reserve Bank of India has directed member banks to not levy any charges for NEFT transfer made from savings account. The RBI directive will come into effect from January next year.
"In order to give further impetus to digital retail payments, it has now been decided that member banks shall not levy any charges from their savings bank account holders for funds transfers done through NEFT system which are initiated online (viz. internet banking and/or mobile apps of the banks)," said the RBI directive to banks.
" This directive is issued under Section 10 (2) read with Section 18 of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007) and shall be effective from January 1, 2020", added the RBI.
Also, NEFT from December 16 has been made available 24x7 i.e. customers can execute fund transfer via NEFT at any time and on any day.