Good News!!! Online Money Transfers through RTGS, NEFT Made Free; Details Inside

There’s a good news for all those who frequently use ‘The Real Time Gross Settlement System’, also known as RTGS and National Electronic Funds Transfer or NEFT System to transfer money and do payments.

According to a new amendment, the charges levied on such transactions have now been removed. This step ensures that a number of people these days use digital platforms for making payments.

Take for instance, country’s largest bank - the State Bank of India (SBI) charged Rs 1 to 5 for the NEFT and between Rs 5 to 50 for the RTGS, depending upon the amount as well as the time of the transfer.

A statement issued by the central bank stated that “In order to give an impetus to the digital funds movement, it has been decided to remove the charges levied by the Reserve Bank of India for transactions processed in the NEFT and RTGS systems. In turn, banks will be required to pass these benefits to their consumers. Instructions to banks in this regard will be issued in a week.”

benefits to their consumers. Instructions to banks in this regard will be issued in a week.”

What is NEFT?

NEFT or National Electronic Funds Transfer facilitates the transfer of money on a one-to-one basis. Under this facility, individuals, firms & corporates can electronically transfer money or funds to any person, firm or even business. Both the parties can have their accounts in any branch of any bank in India, provided that it has this facility.

NEFT helps increase digital payments & makes it easy for people to transfer funds. In addition, there is no upper or lower limit on the sum that can be transferred through NEFT. But, there is a single limitation on the amount of one-time transaction via cash mode that is Rs 50,000.

What is RTGS?

The RTGS facility is basically used for transferring big amounts and the minimum here is Rs 2 lakh. There is no upper ceiling for RTGS transactions.

The State Bank of India’s RTGS charges varies according to the time of the day. For instance, if you have to transfer an amount between Rs 2 lakh to 5 lakh, the bank would charge:

• If the transaction is done from - 9 am to 12 pm - Rs 25 have to paid

• From 12 pm to 330 pm - Rs 26

• From 3:30 pm to 4:30 pm - Rs 31

And for amounts over Rs 5 lakh, the charges are:

• From 9 am to 12 pm - Rs 51

• From 12 pm to 3:30 pm - Rs 52

• From 3:30 pm to 4:30 pm - Rs 56

The latest move by RBI has simply removed all these extra charges that you used to pay while transferring funds online. But remember whenever you use digital platforms be very careful and prefer using an authorized platform to ensure the safety of your account & money.