RBI has removed NEFT and RTGS charges to push for digital payments and asked banks to pass on the benefit to customers.
The announcement was made in the Statement on Developmental and Regulatory Policies, which was released on 6th June by RBI as part of its monetary policy review.
The Reserve Bank levies charges on banks for transactions routed through its Real Time Gross Settlement System (RTGS) meant for large-value instantaneous fund transfers and the National Electronic Funds Transfer (NEFT) System for other fund transfers. Banks, in turn, levy charges on their customers. In order to provide an incetive to digital fund transfers, RBI has done away with the charges levied by it for transactions processed in the RTGS and NEFT systems.
Banks are required in turn to pass on these benefits to their customers.