RBI Removes Charges on RTGS and NEFT Transactions; Asks Banks to Pass on Benefits to Customers
The Reserve Bank of India (RBI) has decided to do away with its charges levied on transactions processed in the real time gross settlement system (RTGS) and national electronic funds transfer (NEFT) systems. The Central bank has also asked banks to pass the benefits to their customers who use RTGS and NEFT for payment transactions.
 
In its statement on "Developmental and Regulatory Policies", RBI says, it levies minimum charges on banks for transactions routed through RTGS, which is used for large-value instantaneous fund transfers and NEFT for other payment transfers.
 
"In order to provide an impetus to digital funds movement, it has been decided to do away with the charges levied by the Reserve Bank for transactions processed in the RTGS and NEFT systems," it says.
 
At present, State Bank of India (SBI), the country's largest state-run lender, charges Re1 to Rs5 for funds transfer through NEFT and Rs5 to Rs50 for transactions carried out via RTGS. For RTGS, the value is required to be Rs2 lakh and more.
 
For NEFT, RBI had stipulated maximum charge per transaction of Rs2.50 for up to Rs10,000, Rs5 for between Rs10,001 and Rs1 lakh, Rs15 for between Rs1 lakh and Rs2 lakh and Rs25 for transaction above Rs2 lakh, excluding tax, if any.

For RTGS transaction, RBI stipulated maximum charges per transaction of Rs25 for between Rs2 lakh and Rs5 lakh and Rs50 for transactions of over Rs5 lakh, excluding tax. All these charges are now removed by the central bank.

Committee to Review ATM Fee Structure
While the usage of automated teller machines (ATMs) is increasing there have been persistent demand to reduce charged levied on ATM transactions and fees. RBI says, it has decided to set up a Committee involving all stakeholders, under the chairmanship of the chief executive (CEO) of  Indian Banks' Association (IBA), to examine the entire gamut of ATM charges and fees. The Committee is expected to submit its recommendations within two months of its first meeting and composition and terms of reference of the Committee will be issued within a week, RBI says.
 
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COMMENTS

Aditya G

1 week ago

Five bucks to tranfer, say 10,000 bucks, is not a big deal. What's RBI smoking?

It's far better than wasting 20 minutes to drive to a branch, 10 minutes to write a cheque, 5 minutes to deposit it, 20 minutes to drive back. In that time, I could watch one episode of Game of Thrones AND do an RTGS transfer.

Ultimately, banks will have to seek ways to make money. It's a business as much as any other. I don't mind paying fees for good & essential services. Removing these charges will means banks will have to look elsewhere to make money and pay staff. I'm not sure if this is a good move on RBI. We're moving into the digital economy and the way to incentivise this is to dis-incentivise paper or increase paper charges. Hey, we need trees!

PRAMOD DAS

1 week ago

Incentives for a digital financial ecosystem

File Complaints in Time: Delay Can Damage Your Cause
Many people crib about bad products and services but procrastinate when it comes to filing a formal complaint, especially if the company refuses to redress the grievance and it needs to be escalated to a consumer forum or other appropriate authority.
 
Often, consumers end up filing complaints after the due date and expect courts or consumer forums to condone the delay. People must...
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Homebuyer Can Seek Refund If Possession Is Delayed Beyond One Year: Consumer Court
In a judgment that brings relief to millions of home-buyers, a consumer court has ruled that a home buyer is well within his rights to demand refund of the entire amount paid, along with a nominal interest rate, if the flat has not been delivered even after a delay of one year from the promised date.
 
This is probably the first time that a clear time frame has been set by any judicial or quasi-judicial authority. Millions of home-buyers are often resigned to their fate when developers keep postponing the delivery of homes sometimes by several years. Several cases, especially in the National Capital Region (NCR), have ended with tragic consequences for the home-buyers. 
 
In a landmark order, Prem Narain, presiding member of the National Consumer Disputes Redressal Commission (NCDRC), New Delhi, earlier this month gave relief to Shalabh Nigam against the builder Orris Infrastructure Pvt Ltd.
 
The said builder was supposed to complete the construction work and hand over the physical possession of the flat that Shalabh Nigam had booked and for which he had nearly paid the entire amount. 
 
As per the agreement, "the complainant was supposed to be handed over the possession within 36 months with a grace period of six months from the date of allotment and the allotment is dated 24 August 2012, according to the NCDRC. Possession was due in February, 2016. 
 
"Clearly the builders have not been able to complete the project in time and deliver the possession of property in question to the complainant in time as per the allotment letter or the apartment buyer agreement,’’ the bench observed. ``It is now clearly established that the allottees have a right to ask for refund if the possession is inordinately delayed and particularly beyond one year."
 
The builder had promised that possession will soon be handed over and all common amenities of the project along with the facilities will be completed by 2014. The complainant has paid a sum of Rs88.96 lakh and this amount is reflected in the statement of accounts dated 14 May 2016, it said. 
 
The builder extended various reasons for the delay, most of which the bench rejected. 
 
"It was argued that total consideration of the apartment is Rs97.06 lakh and if the allotment is cancelled, and refund is ordered, then Opposite Party (the builder) is entitled to forfeit 10 per cent of this amount as earnest money as per the agreed clause," it said citing a clause in the agreement. The bench rejected this contention too. The buyer had made timely payments on all its earlier instalments. 
 
In its order the bench told the builder to complete the construction work and hand over the physical possession of the flat complete in all respects as per agreement till 30 September 2019 after obtaining the occupancy certificate. 
 
It also directed it to pay interest at a  rate of 6% per annum (pa) on the amount deposited by the home-buyer from the due date of possession till the actual date of giving possession. 
 
For the amounts paid after the due date of possession, the interest shall be payable from the date of completion of one year from the date of deposit till the date of physical possession. The receivables of compensation in the form of interest at 6% shall be adjusted at the time of possession before any due amount is taken from the complainant by the builder, it said. 
 
If, however, the builder is unable to deliver the flat by 30 September 2019, the buyer shall be at liberty to take refund of the total deposited amount along with interest at 10% per annum from the date of the respective deposits (from or after 5 September 2012) till actual payment, which the builder will have to pay within six months.  
 
If the homebuyer does not ask for refund, he shall be entitled to get interest at 6%pa as already ordered till possession is given, the bench declared. 
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COMMENTS

AAR

3 weeks ago

Government should immediately make this into a law.

REPLY

BIPIN SAVLA

In Reply to AAR 2 weeks ago

welcome judgement but not much of use when interest is measly 6% and what about cash paid ( if any) + stamp duty,registration charges, GST etc

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