Firstpost
  • Home
  • Video Shows
    Vantage Firstpost America Firstpost Africa First Sports
  • World
    US News
  • Explainers
  • News
    India Opinion Cricket Tech Entertainment Sports Health Photostories
  • Asia Cup 2025
Apple Incorporated Modi ji Justin Trudeau Trending

Sections

  • Home
  • Live TV
  • Videos
  • Shows
  • World
  • India
  • Explainers
  • Opinion
  • Sports
  • Cricket
  • Health
  • Tech/Auto
  • Entertainment
  • Web Stories
  • Business
  • Impact Shorts

Shows

  • Vantage
  • Firstpost America
  • Firstpost Africa
  • First Sports
  • Fast and Factual
  • Between The Lines
  • Flashback
  • Live TV

Events

  • Raisina Dialogue
  • Independence Day
  • Champions Trophy
  • Delhi Elections 2025
  • Budget 2025
  • US Elections 2024
  • Firstpost Defence Summit
Trending:
  • Nepal protests
  • Nepal Protests Live
  • Vice-presidential elections
  • iPhone 17
  • IND vs PAK cricket
  • Israel-Hamas war
fp-logo
RBI removes charges on RTGS, NEFT transactions: Central bank's decision will give a much-needed boost to digital transactions
Whatsapp Facebook Twitter
Whatsapp Facebook Twitter
Apple Incorporated Modi ji Justin Trudeau Trending

Sections

  • Home
  • Live TV
  • Videos
  • Shows
  • World
  • India
  • Explainers
  • Opinion
  • Sports
  • Cricket
  • Health
  • Tech/Auto
  • Entertainment
  • Web Stories
  • Business
  • Impact Shorts

Shows

  • Vantage
  • Firstpost America
  • Firstpost Africa
  • First Sports
  • Fast and Factual
  • Between The Lines
  • Flashback
  • Live TV

Events

  • Raisina Dialogue
  • Independence Day
  • Champions Trophy
  • Delhi Elections 2025
  • Budget 2025
  • US Elections 2024
  • Firstpost Defence Summit
  • Home
  • Business
  • RBI removes charges on RTGS, NEFT transactions: Central bank's decision will give a much-needed boost to digital transactions

RBI removes charges on RTGS, NEFT transactions: Central bank's decision will give a much-needed boost to digital transactions

S Murlidharan • June 7, 2019, 12:05:50 IST
Whatsapp Facebook Twitter

The Narendra Modi government’s Digital India drive has definitely got a boost with this RBI initiative.

Advertisement
Subscribe Join Us
Add as a preferred source on Google
Prefer
Firstpost
On
Google
RBI removes charges on RTGS, NEFT transactions: Central bank's decision will give a much-needed boost to digital transactions

The Reserve Bank of India (RBI) on Thursday said it would waive the fee currently imposed on banks for availing of its NEFT/RTGS payment servers. And in turn, it expects the banks to pass on the resultant savings to customers. The RBI has led from the front. Its initiative could have a ripple, nay shaming, effect on: [caption id=“attachment_4499583” align=“alignleft” width=“380”]Representational image. Reuters. Representational image. Reuters.[/caption] • Goods and services tax (GST) regime where the government always suspects that manufacturers and traders don’t pass on the full benefit of input tax credit to the customers; • The government and state-run companies do not practice what they preach. National Thermal Power Corporation (NTPC), for example, keeps coal mines’ bills pending and electricity boards known for their sloth in their turn keep NTPC’s bills pending; and • Airlines, which far from rewarding the online bookers penalise them with ‘convenience charges’ for booking tickets from the convenience of their home or while on the move from their mobile apps. As it is the bellwether State Bank of India’s (SBI) charges for NEFT are as follows:

NET BANKING CHARGES

RTGS charges are more reasonable considering their size but the minimum amount of RTGS transaction is Rs 2 lakh. For Rs 2 lakh to Rs 5 lakh through the do-it-yourself mode i.e., net banking, it is Rs 5 plus GST and from branches Rs 25 plus GST. And above Rs 5 lakh, the charges are exactly double. RTGS is an instant transfer service and hence reserved for larger transactions. For transactions smaller than Rs 2 lakh, one has to use IMPS (immediate payment service) which is pricier. The price differential for do-it-yourself and branch modes are rooted in the logic that branch officials’ time is precious and net banking is not exactly a rocket science. Will banks merely pass on the savings to the customers or go the whole hog and completely abolish these service charges? It is believed that the banks charge more than what they themselves are charged by the RBI. Be that as it may, banks must encourage net banking more and more because the issuance of cheques and drafts involves a huge amount of paperwork and hence error-prone besides running the risk of being lost in transit. What is more, they have to be presented for collection and then go for clearance, all adding to delay in the payment process. The net banking payments are superior to card payments because they do away with intermediaries viz. Visa cards, MasterCard and our own Rupay. In the process, service charges payable to these intermediaries can be avoided thus bringing the transaction cost down. But then the net banking is not always possible especially when one is on the move and in merchant establishments. Mobile wallets like PhonePe and Paytm rule the roost at these places. The Narendra Modi government’s Digital India drive has definitely got a boost with this RBI initiative. Already, the government departments and companies swear by net banking payments. Income tax refunds are credited directly to taxpayers’ accounts thus dispensing with cheques which could be rejected on the grounds of spelling mistakes or get misplaced due to wayward ways of the postal department. Now, the private businesses and even small businesses would think in terms of embracing the net banking. Many small businesses are already happy with making instant GST payments with a click of the mouse, a pleasant retreat from the days of filling up challans and queuing up at bank counters. (The writer is a senior columnist and tweets @smurlidharan)

Tags
RBI Narendra Modi NTPC InMyOpinion GST MasterCard mobile apps NEFT Net Banking RuPay Paytm Digital India RTGS PhonePe
End of Article
Latest News
Find us on YouTube
Subscribe
End of Article

Impact Shorts

Tata Harrier EV vs Mahindra XEV 9e: Design and road presence compared

Tata Harrier EV vs Mahindra XEV 9e: Design and road presence compared

The Tata Harrier EV and Mahindra XEV 9e are new electric SUVs in India. The Harrier EV has a modern, familiar design, while the XEV 9e features a bold, striking look. They cater to different preferences: the Harrier EV for subtle elegance and the XEV 9e for expressive ruggedness.

More Impact Shorts

Top Stories

Israel targets top Hamas leaders in Doha; Qatar, Iran condemn strike as violation of sovereignty

Israel targets top Hamas leaders in Doha; Qatar, Iran condemn strike as violation of sovereignty

Nepal: Oli to continue until new PM is sworn in, nation on edge as all branches of govt torched

Nepal: Oli to continue until new PM is sworn in, nation on edge as all branches of govt torched

Who is CP Radhakrishnan, India's next vice-president?

Who is CP Radhakrishnan, India's next vice-president?

Israel informed US ahead of strikes on Hamas leaders in Doha, says White House

Israel informed US ahead of strikes on Hamas leaders in Doha, says White House

Israel targets top Hamas leaders in Doha; Qatar, Iran condemn strike as violation of sovereignty

Israel targets top Hamas leaders in Doha; Qatar, Iran condemn strike as violation of sovereignty

Nepal: Oli to continue until new PM is sworn in, nation on edge as all branches of govt torched

Nepal: Oli to continue until new PM is sworn in, nation on edge as all branches of govt torched

Who is CP Radhakrishnan, India's next vice-president?

Who is CP Radhakrishnan, India's next vice-president?

Israel informed US ahead of strikes on Hamas leaders in Doha, says White House

Israel informed US ahead of strikes on Hamas leaders in Doha, says White House

Top Shows

Vantage Firstpost America Firstpost Africa First Sports
Latest News About Firstpost
Most Searched Categories
  • Web Stories
  • World
  • India
  • Explainers
  • Opinion
  • Sports
  • Cricket
  • Tech/Auto
  • Entertainment
  • IPL 2025
NETWORK18 SITES
  • News18
  • Money Control
  • CNBC TV18
  • Forbes India
  • Advertise with us
  • Sitemap
Firstpost Logo

is on YouTube

Subscribe Now

Copyright @ 2024. Firstpost - All Rights Reserved

About Us Contact Us Privacy Policy Cookie Policy Terms Of Use
Home Video Shorts Live TV