InvestorQ : Can I now transfer money through NEFT/RTGS for free?
vidhya Laxmi made post

Can I now transfer money through NEFT/RTGS for free?

Answer
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tanvi Patel answered.
1 year ago


Now fund transfer through Real Time Gross Settlement System (RTGS) and National Electronic Funds Transfer (NEFT) System will be charged at a highly reduced cost or no cost.
To encourage the banking system and the users towards digital funds movement, RBI has disclosed the step towards the digital transaction process.

Below are the current structure of charges that can be charged on the customer for NEFT ( based RBI website)
1) You can credit the beneficiary accounts for free ( Inward transactions) for free.
2) Outward transactions at your originating bank branches- charges as follows;

1) For transactions up to Rs 10,000 : not exceeding Rs 2.50 (+ Applicable GST) . 2) For transactions above Rs 10,000 up to Rs 1 lakh: not exceeding Rs 5 (+Applicable GST). 3) For transactions above Rs 1 lakh and up to Rs 2 lakhs: not exceeding Rs 15 (+ Applicable GST) . 4) For transactions above Rs 2 lakhs: not exceeding Rs 25 (+ Applicable GST)

However, On the other hand, India government may have to suffer loss due to this new waiver policy.

What is NEFT? It is transaction done using the banking system and a nationwide payment system. It one-to-one funds transfer.

NEFT is accessible to individuals, firms and corporates. The user can electronically transfer funds from any bank branch to any user coming under the said category.
But the receiver must hold a bank account with any other bank branch in the country.

RTGS: is the type of transaction that allows individual to transfer on an order by order basis. Here minimum remitted amount is Rs. 2 lakh with no upper ceiling. 

Banks will take some time to implement the new policy as the RBI instruction on the same is said to be issued within a week.