RBI makes RTGS/NEFT transfers free

RBI has announced that it has decided to do away with the charges on fund transfers through RTGS and NEFT routes with an aim of boosting digital transactions and asked banks to pass on the benefits to customers.

RBI in his statement has emphasised that in turn the banks will need to pass on the benefits to their customers. However, after RBI comes out with a circular on this, clarity on the extent of the cut for bank customers will emerge.
RTGS is meant for large-value instantaneous fund transfers, while NEFT system is meant for fund transferring up to Rs 2 lakh.

The central bank charge banks a minimum amount for transactions routed through these systems for fund transfers. Accordingly, banks levy charges on their customers.

SBI charges between Re 1 and Rs 5 for transactions through NEFT and between Rs 5 and Rs 50 for RTGS.