RBI Scraps Charges on NEFT, RTGS Fund Transfers
Last Updated : June 7, 2019, 3:19 p.m.
In a move aimed to boost digital transactions in India, the Reserve Bank of India has announced to scrap charges on fund transfers made through National Electronic Fund Transfer (NEFT) and Real-time Gross Settlement (RTGS) tools. These tools are applicable to fund transfers made from one bank account to another. They can even be used to make a credit card payment.
Previously, banks used to debit a certain fee for such transfers. The RBI said in its statement that it levies minimum charges on banks for NEFT and RTGS transactions. Banks just pass on that cost to the end consumers. To give impetus to digital funds movement, it has been decided to scrap the charges on NEFT and RTGS systems, said RBI in the statement.
How Much Do Banks Charge on NEFT & RTGS Fund Transfers?
As of now, banks have been levying charges on these transactions. The charges, however, vary from one bank to another. So, you can read the table below to know the charges as well as timings of different banks with respect to NEFT and RTGS transfers.
| Banks | NEFT | NEFT Timing | RTGS | RTGS Timing |
|---|---|---|---|---|
| State Bank of India (SBI) | Up to ₹10,000 - ₹2.50 Up to ₹1,00,000 - ₹5 Above 1,00,000-2,00,000 - ₹15 Above ₹2,00,000 - ₹25 | ₹2,00,000-5,00,000 - ₹25-31 Above ₹5,00,000 - ₹51-56 | 9 a.m.-4.30 p.m. | |
| HDFC Bank | Up to ₹10,000 - ₹2.50 Up to ₹1,00,000 - ₹5 Above 1,00,000-2,00,000 - ₹15 Above ₹2,00,000 - ₹25 | 8 a.m.-6.30 p.m. | ₹2,00,000-5,00,000 - ₹25 Above ₹5,00,000 - ₹50 Online RTGS transactions are free with effect from November 1, 2017 | 8 a.m.-5 p.m. |
| ICICI Bank | Up to ₹10,000 - ₹2.50 Up to ₹1,00,000 - ₹5 Above 1,00,000-2,00,000 - ₹15 Above ₹2,00,000-5,00,000 - ₹25 Above 5,00,000-10,00,000 - ₹25 | 8 a.m.-6.30 p.m. | ₹2,00,000-5,00,000 - ₹25 Above ₹5,00,000-10,00,000 - ₹50 | 8 a.m.-6 p.m. |
| Axis Bank | Up to ₹10,000 - ₹2.50 Up to ₹1,00,000 - ₹5 Above 1,00,000-2,00,000 - ₹15 Above ₹2,00,000 - ₹25 Online transactions are free | ₹2,00,000-5,00,000 - ₹25 Above ₹5,00,000 - ₹50 Online transactions are free | ||
| Punjab National Bank (PNB) | Up to ₹10,000 - ₹2.50 Up to ₹1,00,000 - ₹5 Above 1,00,000-2,00,000 - ₹15 Above ₹2,00,000 - ₹25 | 6 a.m.-6.35 p.m. (When Done Online 8 a.m.-6.40 p.m. (When Done at Branch) | ₹2,00,000-5,00,000 - ₹25-30 Above 5,00,000 - ₹50-55 | 8 a.m.-6 p.m. |
| Kotak Mahindra Bank | Up to ₹10,000 - ₹2.50 Up to ₹1,00,000 - ₹5 Above 1,00,000-2,00,000 - ₹15 Above ₹2,00,000 - ₹25 | 8 a.m.-6 p.m. | ₹2,00,000-5,00,000 - ₹25-30 Above 5,00,000 - ₹50-55 | 8 a.m.-4 p.m. |
Note – The charges would also include the Goods and Services Tax (GST) at the applicable rate. The timings shown with respect to NEFT and RTGS modes of different banks would apply on each working day from Monday to Saturday. Transfers made on the 2nd and 4th Saturday as well as any holiday would get credited to the beneficiary account on the next working day.
Now that these charges would no longer be the case courtesy the latest announcement from the RBI, you can feel free to transact using the RTGS and NEFT modes.
How Can You Make NEFT and RTGS Transactions Online?
Both NEFT and RTGS are meant for fund transfers from one bank to another. You can make fund transfers online using net banking. You should login to net banking and add the beneficiary account where you want to transfer the money. For that, you need to click on Third Party Transfer and choose NEFT or RTGS, whichever you want to. Add beneficiary account details such as the name of the account holder, account number, bank branch, IFSC code , etc.
Submit the details after filling them correctly. The details will be checked thoroughly before the beneficiary can be activated. The beneficiary activation can take 30 minutes or so. As soon as it is activated, you can transfer the fund through any of these two modes.
How Can You Make NEFT and RTGS Transactions at Bank Branch?
You must ask for the NEFT or RTGS form at the bank branch. Fill the details of beneficiary name, account number, IFSC Code, beneficiary branch, etc. In addition, you need to handover a cheque, having the amount you want to transfer, to the bank official. The bank official would then execute the transaction based on the details submitted.