Reserve Bank of India (RBI) rationalises customer charges for NEFT

July 13, 2012:

The NEFT system, introduced in 2005, has seen exponential growth in recent years reflecting its popularity as well as increasing customer acceptance. Despite such growth, imany banks continue to levy the maximum permissible charges to their customers.

According to Reserve Bank of India, it is desirable that the benefits accruing on account of increasing volume of transactions are passed on to the customers so as to incentivise greater use of the electronic payment system in place of cumbersome paper-based mechanism like cheques/DDs. It is also considered necessary to provide the large number of people being covered under the financial inclusion programmes affordable financial services through an efficient remittance mechanism like the NEFT.

Accordingly, Reserve Bank of India has rationalised charges that banks can levy on customers for transfer of funds through National Electronic Funds Transfer (NEFT):



Now banks can levy not more than Rs 2.50 (exclusive of service tax) for funds transfer upto Rs 10,000. Charges for transfers beyond this limit would remain unchanged, that is, Rs 5 for transfers between Rs 10,001 to Rupees one lakh; Rs 15 for transfers between Rupees one lakh and above and upto Rs 2 lakh; and Rs 25 for transfers beyond Rs 2 lakh.

These charges would become effective from August 1, 2012.



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