The Reserve Bank of India (RBI) has mandated banks not to charge savings account holders for NEFT with effect from January 2020.
The RBI said earlier that it had done away with charges on NEFT and RTGS transactions.
“In order to provide an impetus to digital funds movement, it has been decided to do away with the charges levied by the Reserve Bank for transactions processed in the RTGS and NEFT systems. Banks will be required, in turn, to pass these benefits to their customers. Instructions to banks in this regard will be issued within a week,” the central bank said in a statement.
RTGS is meant for large-value instantaneous fund transfers while the NEFT is used for fund transfers up to Rs 2 lakh.
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