Electronic Funds Transfer Infrastructure in India – Usage of RTGS and NEFT – RBI Notification

The Reserve Bank has doubled the threshold limit for electronic fund transfers using the Real Time Gross Settlement (RTGS) system to Rs 2 lakh with effect from November 15.

For electronic transactions valued between Rs 1-2 lakh, the RBI has created a new value band in its 'near real-time' National Electronic Fund Transfer (NEFT) system to cater to retail bank customers.

The RBI has revised the service charges for fund transfers through the NEFT mode. Fund transfers up to Rs 1 lakh will continue to attract a service charge of Rs 5.

For fund transfers valued between above Rs 1 lakh and Rs 2 lakh, the RBI has revised the customer charges downward to Rs 15 from Rs 25 earlier. The fee for fund transfers worth more than Rs 2 lakh remains unchanged at Rs 25.