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Online fund transfer upto Rs 10,000 for Rs 2.5 from Aug 1

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Press Trust of India Mumbai
Last Updated : Jan 24 2013 | 2:11 AM IST

From August 1, transfer of funds not over Rs 10,000 from one account to another account through National Electronic Funds Transfer (NEFT) system, will attract maximum charge of Rs 2.50 per transaction, RBI said in a notification.

The notification comes a month after the then Finance Minister Pranab Mukherjee asking the RBI to work out a mechanism so that no fee is charged from customers for electronic fund transfers.

As per the existing fee structure, electronic transfer of fund up to Rs 1 lakh attracts a maximum charge of Rs 5 per transaction.

As per the notification, a new slab of payment upto Rs 10,000 has been included to promote small value transactions in cashless mode.

"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 or demand drafts," RBI said.

"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," it said.

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However, charges for transfers beyond Rs 10,000 limit would remain unchanged, it said.

Charges for electronic transfer of fund beyond Rs 10,000 but less than Rs 1 lakh will be a maximum of Rs 5 per transaction.

At the same time, for electronic transfer of funds beyond Rs 1 lakh to less than Rs 2 lakh, RBI has retained maximum charges of Rs 15 per transaction.

  

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First Published: Jul 13 2012 | 9:35 PM IST

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