New Delhi: In a bid to boost the digital transactions, the Reserve Bank of India has directed all the banks to waive the charge imposed on savings bank account customers performing online transactions through NEFT or National Electronic Funds Transfer system with effect from January 2020, stated a report.
An official statement from the RBI, as quoted by Live Mint, read: “Reserve Bank’s endeavour has been to establish state of the art payment systems that are efficient, convenient, safe, secure and affordable. The efforts have resulted in a rapid growth in the retail digital payment systems.”
The RBI maintains two types of inter-bank transfer systems namely RTGS and NEFT. The RTGS is meant for large-value instantaneous fund transfers with a lower limit of Rs 2 lakhs and no upper limit. the NEFT, on the other hand, is used for fund transfers up to Rs 2 lakh. While funds can be transferred in a continuous, individual settlement through RTGS, the funds transferred through the NEFT are settled on a deferred basis in batches.
In the month of August, the RBI governor Shaktikanta Das announced the central bank’s decision to make NEFT available on a 24×7 basis from December 2019. “This is expected to revolutionise the retail payments system of the country,” Shaktikanta Das was quoted by a report as saying, during his address at a Monetary Police press conference.
The announcement was made keeping in mind the Payments Settlement Vision 2019 to 2021 of RBI according to which all the NEFT and RTGS transfers would be made available for customers round the clock and for free.