On 8th Oct’08, RBI mandated that Banks must NOT charge for any Inward RTGS/NEFT/ECS transactions (i.e., for receiving funds).
For Outward transactions, i.e., sending the funds, the Maximum Charges have been specified as below:
(i) RTGS – Rs. 1 to 5 lakh – not exceeding Rs. 25 per transaction
– Rs. 5 lakh and above – not exceeding Rs. 50 per transaction
(ii) NEFT – Up to Rs. 1 lakh – not exceeding Rs. 5 per transaction
– Rs.1 lakh and above – not exceeding Rs. 25 per transaction
In case of ECS Debit Returns, Bank cannot charge higher than Cheque Return Charges as formulated by the Bank.
This is a good news for the Customers. Most banks had been previously charging even for inward remittance for RTGS, henceforth it will be FREE. Outward remittance charges have also been greatly rationalised to promote these modes for transaction.
In practice, banks save when Customers use NEFT/RTGS instead of Cheque or Cash Deposit, but Banks have some-how not encouraged these modes, except for few like ICICI Bank which offers free outward NEFT services for online customers.
The above maximum charges specified by the RBI are irrespective of the mode of instruction – Postal/Fax/Internet/Branch/Telebanking/ATM/etc… as accepted by the bank.
The circular can be read at RBI’s Website at the following link – Levy of Service Charges for Electronic Payment Products
RBI has also specified the Maximum limit for Service Charges for Outstation Cheque Collection in the same Circular – in the next post