RBI permits Clearing Houses / processing centers to Levy of Processing Charges on Retail Electronic Payment Systems NEFT / NECS / RECS / ECS on the originating banks from 1st July 2011

Reserve Bank of India has waived processing charges for retail electronic payment products (NEFT, NECS, RECS and ECS) since the year 2006 in order to promote the usage of these systems. The last waiver was valid up to March 31, 2011. In recent years, the usage of these products has increased considerably. While the originating banks are levying charges on their customers, there has been no compensation paid to the processing centers and destination banks. There has been demand for compensation from the paying banks / processing centres.

2. On a review and after consultation with stakeholders, Reserve Bank of India has decided to permit Clearing Houses / processing centers from July 01, 2011 to levy charges on the originating banks as under :-

25 paise (exclusive of service tax) for every outward transaction
25 paise (exclusive of service tax) for every return transaction

3. As regards the compensation to destination banks, it has been decided that destination banks may be paid by the originating banks as below :-

25 paise (exclusive of service tax) for every credit transaction
50 paise (exclusive of service tax) for every debit transaction

The necessary data on number of transactions originated and received by each bank will be provided by Clearing Houses / Processing Centers on a monthly basis. Using this, banks may put in place necessary systems to calculate the compensation payable / receivable to / from other banks and settle the same amongst themselves.

4. The charges may be collected on a monthly basis. The participant banks are not permitted to pass on these charges to customers.

Banknet's 7th Edition of Annual International Bank Tech Summit on 20th September 2011 at Taj Lands End, Mumbai, India will also focus on Multi Channel Strategies & Management Payments, Mobile, Internet, ATMs, Credit Cards, Point of Sale. Read More

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