NEFT Transfer for Savings Bank Account Holders: Here's a New Year's gift for savings bank account holders from RBI.
NEFT Transfer for Savings Bank Account Holders: Here’s a New Year’s gift for savings bank account holders from RBI. They will not have to pay any charges for NEFT Transfers from January 1, 2020. The Reserve Bank of India (RBI) has directed member banks to not levy any charges from savings bank account holders for online fund transfers through NEFT system. The RBI directive to banks will be effective from January 1, 2020. This means savings bank account holders will be able to transfer funds via NEFT system online with net banking or mobile banking app of banks for free from the beginning of the New Year.
“In order to give further impetus to digital retail payments, it has now been decided that member banks shall not levy any charges from their savings bank account holders for funds transfers done through NEFT system which are initiated online (viz. internet banking and/or mobile apps of the banks),” RBI said in its directive to banks.
” This directive is issued under Section 10 (2) read with Section 18 of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007) and shall be effective from January 1, 2020,” the central bank added.
24×7 NEFT Transfer
From yesterday (December 16, 2019), NEFT transfer facility has been made available 24×7. Bank customers can now transfer money via NEFT 24×7 on any day of the year.
Earlier, through a circular dated June 11, 2019, RBI had decided to waive processing charges levied by it on banks for RTGS and NEFT transactions. ” In order to provide an impetus to digital funds movement, it has been decided that with effect from July 1, 2019, processing charges and time varying charges levied on banks by Reserve Bank of India (RBI) for outward transactions undertaken using the RTGS system, as also the processing charges levied by RBI for transactions processed in NEFT system will be waived by the Reserve Bank,” RBI had said while advising banks to pass on the benefits to their customers from July 1, 2019.