Reserve Bank of India (RBI) has announced to remove all the current charges which were applicable on the money transfer is done through Real – Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT). The decision has been taken to provide an impetus to the digital fund movement. Before this announcement, banks normally charged anywhere between Rs.30 to Rs.55 for a single RTGS transaction, while the charges for NEFT transaction could go up to Rs. 20.<\/p>\n\n\n\n
A way of making any payment through digital mode is called digital transaction, which can be also called electronic payment. In such payment no hard cash is required, both payer and payee use digital mode for sending and receiving the money. Digital payments<\/strong><\/a> are an instant and convenient way of making payments. These transactions are automated where no paper is used. Examples of such payments are –Debit card, mobile wallets, digital payment apps, Unified payment interface (UPI), and bank repaid cards etc.<\/p>\n\n\n\n Govt. of India with the vision to transform India into a digitally empowered society, started the programme “Digital India‘’<\/strong>. Faceless, paperless and cashless is the professed role of Digital India. Working on this ideology our govt. has come up with various modes for the digital transaction which are,<\/p>\n\n\n\n Banking\nCards, USSD, AEPS, UPI, Mobile Wallets, Banks Pre Paid Cards, Point of Scale,\nInternet Banking, Mobile Banking and Micro ATM’s. These are the modes which are\ngenerally used for digital transactions, but most widely and commonly known\nmode of digital transaction is RTGS and NEFT. These both systems are maintained\nby Reserve bank of India. It is applicable for the transfer of money within\nIndia.<\/p>\n\n\n\n Under RTGS, the fund transfer takes place on a real time basis<\/a> or in the simple way we can at the time of request received. RTGS is one of the fastest internet banking facility available through banking channels in India. The beneficiary bank will credit the recipient account within 30 minutes of receiving the fund transfer message. One thing which has to be kept in mind while doing RTGS that, the fund’s settlement takes place in the books of RBI; the payments are final and irrevocable. RTGS is meant for the large value transaction. There is no upper limit for the RTGS transaction, the minimum amount to be remitted through RTGS is 2 lakh. The RTGS service for customers is available from 9:00 hours to 16:30 hours for weekdays and the Saturday timings are 9:00 hours to 14:00 hours. <\/p>\n\n\n\n NEFT is a nationwide payment system facilitating one to one fund’s transfer. NEFT operates on a deferred net settlement basis and settles transactions in batches. The settlement takes place on an hourly basis. Timings for weekdays are 9:00 hours to 19:00 hours and for Saturday it is 9:00 hours to 13:00 hours. However, there is no fixed minimum or maximum ceiling for NEFT transaction. Even single Rs. 1 also can be transferred through NEFT. <\/p>\n\n\n\n <\/p> Such\npayments are easy and convenient. Individual need not to carry hard cash with\nhim. UPI apps and E-wallets made digital payments easy, only aadhaar number or\ncard or mobile number is enough to make transactions. <\/p>\n\n\n\n There\nis no time limit for digital transaction, even at the midnight individual can\nsend or can receive money, the best advantage of digital transaction.<\/p>\n\n\n\n Govt. has announced various exemptions on taxes to encourage digital transactions. For example, on the payment of Rs.2000, govt. provides full exemptions on service tax. 0.75% discount on fuel and 10% discount are provided on insurance premium of govt. insurers. <\/p>\n\n\n\n On every transaction, the individual is not required to maintain any separate record. The automatic passbooks inside these E-wallets or app maintain the entire record, track every transaction and can be accessed at any time.<\/p>\n\n\n\n There\nare few details which are required for the transaction through NEFT and RTGS;<\/p>\n\n\n\n As both RTGS and NEFT system of the online transaction are maintained by RBI, so it has not levied heavy charges over the transaction and according to RBI, banks cannot charge for inward remittance or on receipt of funds. But for the outward transaction, it has implied charges, varies from the amount to amount need to be transferred. For NEFT transfer customer has to pay from Rs.5 to 25. Banks can not charge more than Rs. 5 for any transfer upto1 lakh, Rs. 15 for 1 to 2 lakhs and Rs.25 for that above Rs.2 lakh. Charges for RTGS transaction, Rs.25 for Rs.2 to Rs.5 lakh and Rs.50 for any amount above Rs. 5 lakh.<\/p>\n\n\n\nWhat\nare the Modes of Digital Transactions?<\/h2>\n\n\n\n
What is\nReal Time Gross Settlement (RTGS)?<\/h3>\n\n\n\n
What is National Electronic Funds Transfer (NEFT)?<\/h3>\n\n\n\n
Advantages of Digital Transactions <\/h3>\n\n\n\n
The requirement for NEFT AND RTGS Transaction <\/h3>\n\n\n\n
Charges Applicable on the transaction before the RBI Waive off of transaction charges decision <\/h3>\n\n\n\n
Removal\nof NEFT and RTGS Payment Charges<\/h3>\n\n\n\n