As NEFT Goes 24/7, RBI Bars Banks from Charging Fees

MUMBAI: The RBI has barred banks from charging any fee for electronic fund transfers from savings accounts. The move comes as it operationalises round-the-clock National Electronic Funds Transfer (NEFT) operations. The directive comes six months after the RBI had waived the fees it charges to banks and asked them to pass on the benefits without expressly barring charges.

The RBI circular said that in order to give further impetus to digital retail payments, member banks shall not levy any charges from their savings bank account holders for funds transfers done through the NEFT system which are initiated using internet banking or mobile apps.

Earlier, the RBI issued a statement after running its NEFT systems through the night. “The RBI operationalised NEFT 24/7 basis from today 12am. This ensures availability of anytime electronic funds transfer. The RBI now joins an elite club of countries having payment systems that enable round-the-clock funds transfer and settlement of any value,” the central bank said in a statement.

Between 12am and 8am on Monday, RBI’s NEFT settled over 11.4 lakh transactions. “Making available NEFT 24/7 is part of RBI’s vision of empowering every Indian with access to a bouquet of e-payment options,” the banking regulator said in a statement.

Following the RBI circular, Paytm Payments Bank announced an immediate enablement of 24-hour NEFT. The payments bank said it was the first app to offer three ways to pay 24/7 seamlessly within the same “money transfer” flow via UPI, IMPS & now NEFT.

“This is a beneficiary move for Paytm as now millions of its users can pay up to Rs 10 lakhs per transaction instantly from their Paytm app using NEFT. This also benefits the corporates and businesses who hold Paytm Payments Bank current account as now they can pay up to Rs 50 lakh per transaction 24/7,” the bank said.

Source: Times of India

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