RBI to waive fund transfer fee for RTGS, NEFT soon

Muscat: Customers who use the National Electronic Funds Transfer (NEFT) or Real Time Gross Settlement (RTGS) systems for fund transfers within India, will soon have the transfer charges waived off.

In a statement on Thursday, the Reserve Bank of India (RBI) said, “In order to provide an impetus to digital funds movement, it has been decided to do away with the charges... in the RTGS and NEFT systems.” The charges are levied by the RBI on banks.

Instructions to banks, to pass on the benefits to their customers would be issued within a week, the statement added.

Additionally, the bank also said that a committee would be constituted to examine charges for ATM cash withdrawals in the wake of increased usage and persistent demands by banks to change the ATM charges and fees.

The Committee’s terms of reference will also be issued within a week, the RBI said.