Mumbai | Jagran News Desk: The Reserve Bank of India on Thursday decided to remove charges on RTGS and NEFT transactions to boost digital transactions and asked the banks to pass on the benefits to their customers.  

The Real Time Gross Settlement System (RTGS) is meant for large-value instantaneous fund transfers while the National Electronic Funds Transfer (NEFT) System is used for fund transfers up to ₹2 lakhs.

The RBI Monetary Policy Committee (MPC) meeting ended on Thursday and in a statement, it said that it levies minimum charges on banks for transactions routed through RTGS and NEFT system for other fund transfers.

In order to provide to boost digital transactions, it has been decided to do away with the charges levied by the RBI for transactions processed in the RTGS and NEFT systems, said RBI in a statement.

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"Banks will be required, in turn, to pass these benefits to their customers. Instructions to banks in this regard will be issued within a week," the central bank said.

Meanwhile, the RBI has decided to set up a committee to review the charges levied on the use to ATMs as the usage by the public has been growing significantly.

"There have, however, been persistent demands to change the ATM charges and fees," the RBI noted.

In order to address these, it has been decided to set up a committee involving all stakeholders, under the chairmanship of the Chief Executive Officer, 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, RBI Governor Shaktikanta Das told reporters here. The composition and terms of reference of the committee will be issued within a week, the central bank said.

(with agency inputs)

Posted By: Aalok Sensharma