RBI's Big Decision: NEFT transactions will not be charged from January.

RBI's Big Decision: NEFT transactions will not be charged from January.

 In the New Year, customers can get a new gift from banks. From January 2020, the customer will not have to pay any fees from banks for transactions done through NEFT. With a view to promote digital transactions on the third anniversary of demonetization, the Reserve Bank of India has moved a proposal in this regard.

The central bank has proposed to make necessary arrangements for using fast tags for parking and payment at petrol pumps. Digital payments accounted for 96 percent of the total non-cash retail payments between October 2018 and September 2019.

In the same period, the National Electronic Funds Transfer (NEFT) and Integrated Payment Interface (UPI) systems have generated transactions worth Rs 252 crore and Rs 874 crore, respectively. On an annual basis, their transactions have increased by 20 percent and 263 percent respectively.

The central bank said in a statement that the reason for this significant increase in payment systems is due to several steps taken by the Reserve Bank in this regard. In such a situation, to empower every citizen for exceptional payment experience, the Reserve Bank has instructed banks not to charge customers for online transactions made from savings accounts under the NEFT system.

Apart from this, the central bank also informed about the facility of payment with RuPay card in Bhutan. It is worth mentioning that on 8 November 2016, the government took a historic decision and closed the old notes of 500 and 1,000 rupees. A new note of 2,000 and 500 rupees was introduced in its place.