RBI lowers fees for e-payments in India

Reserve Bank of India (RBI) has recently reduced charges for electronic fund transactions through real time gross settlement (RTGS), national electronic fund transfer (NEFT) and electronic clearing services (ECS) which means that now customers will be charged any fee for receiving money from other bank accounts while senders will have to pay less.

RBI released the fixed uniform rates for various electronic payment services offered by banks. As per new regulation payees will not be charged any fee while payers will pay Rs 50 for every RTGS transaction and Rs 25 for NEFTs. Currently, banks such as SBI and ICICI charge payee Rs 100 and Rs 25 for every inward transaction. For outward transaction, the fee used to go up as high as Rs 1,500 per RTGS transaction.

Yes Bank is among those lenders who decided to consider the initiative conjointly with several co-operative banks to act as their RTGS/ NEFT clearing partner.

“This move of RBI will not only ensure settlement risk mitigation as more and more banks will now actively work on the electronic payment format but also encourage more customers, both retail and corporate, to adopt the e-payment system,” said Yes Bank president (transaction banking) Suresh Sethi.