InvestorQ : Is it true that the credit policy has made digital transfer of funds and ATM withdrawals totally cost-free?
Dilmini Mercia made post

Is it true that the credit policy has made digital transfer of funds and ATM withdrawals totally cost-free?

Answer
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Dhwani Mehta answered.
1 year ago


The policy announced a number of measures outside rates and liquidity pertaining to the banking system. There has been a slight misunderstanding on these issues and you need to understand the RBI announcement in the right perspective.

· RBI will do away with charges for NEFT and RTGS payments to encourage digital payments. The caveat will be that banks must pass on this benefit entirely to the customers.

· Note here that this is the charge that RBI levies on the banks and gets passed on to you. The bank itself levies charges at your end and the policy does not talk anything about that. So you can presume that the bank levied charges will continue but these banks will pass on the RBI benefit to you.

· There is one more thing about electronic transfer charges. The RBI has only talked about removing charges on NEFT and RTGS transactions. However, special charges like IMPS transfers and use of payment gateway will continue to be charged and there will be no change in these. But there will be some reduction in your funds transfer charges.

There is no announcement on the ATM charges. The only thing the policy has announced is that the RBI will appoint a committee to review the entire gamut of ATM usage charges, number of free withdrawals and cross bank ATM charges. The final decision will be taken and a common policy will be evolved based on the findings of the committee. The policy has not committed anything.