The Reserve Bank of India (RBI) has directed banks participating in the NEFT system not to levy charges from their savings bank account holders for funds transfers done through NEFT system which is initiated online.
In a Circular issued by the RBI said that, “In order to give further impetus to digital retail payments, it has now been decided that member banks shall not levy any charges from their savings bank account holders for funds transfers done through NEFT system which is initiated online (viz. internet banking and/or mobile apps of the banks)”.
The RBI also said that, the directive is issued under Section 10 (2) read with Section 18 of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007) and shall be effective from January 1, 2020.
