The Reserve Bank of India has decided not to impose any charges on transactions through RTGS and NEFT systems, making money transfer cheaper from 1 July. RBI has also asked banks to pass on the benefits to customers. RTGS is meant for large-value instantaneous fund transfers, while NEFT system is used for fund transfers of up to Rs 200,000. Currently, the RBI levies minimum charges on banks for transactions routed through its RTGS and NEFT systems. The move will push digital transaction and provide an impetus to digital funds movement. The RBI has also constituted a high-level committee under IBA Chief Executive V G Kannan to examine ATM charges and fees by banks.
