Banks not to levy NEFT charge on savings bank account wef January 2020

Banks not to levy NEFT charge on savings bank account wef January 2020.

As per RBI during the period October 2018 to September 2019,  the National Electronic Funds Transfer (NEFT) and Unified Payments Interface (UPI) systems handled 252 crore and 874 crore transactions with year on year growth of 20% and 263%, respectively.

The digital payments constituted a high 96% of total non-cash retail payment.

No NEFT Charges on Savings Bank

With a view to empower citizens with an Exceptional (e) Payment experience, and provide access to a bouquet of options, the Reserve Bank has proposed to take the following steps:

(a) Mandate banks not to charge savings bank account customers for online transactions in the NEFT system with effect from January 2020.

(b) Operationalise the Acceptance Development Fund to increase acceptance infrastructure with effect from January 1, 2020.

(c) Constitute a Committee to assess the need for plurality of QR codes and merits of their co-existence or convergence from both systemic and consumer viewpoints.

(d) Permit all authorised payment systems and instruments (non-bank PPIs, cards and UPI) for linking with National Electronic Toll Collection (NETC) FASTags. Going forward, this will facilitate the use of FASTags for parking, fuel, etc., payments in an interoperable environment.

(e) Enable processing of e-mandates for transactions through UPI.

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