The Reserve Bank of India (RBI) has mandated banks not to charge savings bank account customers for online transactions in the NEFT (National Electronic Funds Transfer) system with effect from January 2020.
The central bank had earlier done away with charges on fund transfers through RTGS and NEFT routes to boost digital transactions and asked banks to pass on the benefits to customers. The Real Time Gross Settlement System (RTGS) is meant for large-value instantaneous fund transfers while the NEFT is used for fund transfers up to Rs 2 lakh.
The RBI used to levy minimum charges on banks for transactions routed through RTGS and NEFT system for other fund transfers. Banks, in turn, levied charges on their customers.
In October, the RBI said it will make it easier for people to transfer money as NEFT will soon be available 24 hours as opposed to working hours on weekdays as of now. The revised timings will be effective from December this year.
At present, NEFT is available only till 7:45 pm on working days. Also, NEFT does not work on the second and fourth Saturday of the month.
Meanwhile, in a statement on Friday, the RBI said it has decided to permit all authorised payment systems and instruments (non-bank PPIs, cards and UPI) for linking with National Electronic Toll Collection (NETC) FASTags.
“Going forward, this will facilitate the use of FASTags for parking, fuel, etc., payments in an interoperable environment,” the RBI said.
In order to further empower every citizen with an exceptional payment experience and provide them access to a bouquet of options, the RBI has proposed to operationalise the Acceptance Development Fund to increase acceptance infrastructure with effect from January 1, 2020.
It has also decided to constitute a committee to assess the need for plurality of QR codes and merits of their co-existence or convergence from both systemic and consumer viewpoints.
The RBI said digital payments constituted a high 96 per cent of total non-cash retail payments during the period October 2018 to September 2019.