• Deccan Chronicle
  • Andhra Bhoomi
  • Asian Age
  • ePaper
  •  Auto Refresh
Home

ePaper
Last Updated:03:35 AM IST | Tuesday, Jan 31, 2023
  • Home
  • Politics, Plan And Policy
  • Markets
  • Companies
  • Economy
  • In Other News
  • Autos
  • Just In
Menu
  • Home
  • Politics, Plan And Policy
  • Markets
  • Companies
  • Economy
  • In Other News
  • Autos
  • Just In
Home > Economy > No levying of charges on NEFT payment from January: RBI to banks
Economy
No levying of charges on NEFT payment from January: RBI to banks
By  
PTI   , Published : Nov 8, 2019, 5:25 pm IST | Updated : Nov 8, 2019, 5:25 pm IST

RBI has also proposed that FASTags would be enabled to pay for parking fee and even at fuel stations.

This rapid growth in the payment systems, inter-alia, has been facilitated by a series of measures taken by the Reserve Bank of India,
This rapid growth in the payment systems, inter-alia, has been facilitated by a series of measures taken by the Reserve Bank of India," the central bank said in a statement on furthering digital payments. (Representational image)

Mumbai: Come January 2020, and customers may not have to pay any charges for transactions done through the popular NEFT system.

A proposal in this regard has been mooted by the RBI to give impetus to digital transactions on the third anniversary of demonetisation.

The central bank has also proposed that FASTags would be enabled to pay for parking fee and even at fuel stations.

Digital payments constituted a high 96 per cent of total non-cash retail payments during the October 2018 to September 2019.

During the same period, the National Electronic Funds Transfer (NEFT) and Unified Payments Interface (UPI) systems handled 252 crore and 874 crore transactions with year on year growth of 20 per cent and 263 per cent, respectively.

"This rapid growth in the payment systems, inter-alia, has been facilitated by a series of measures taken by the Reserve Bank of India," the central bank said in a statement on furthering digital payments.

Now to further empower every citizen with an "Exceptional (e) Payment Experience", and provide her access to a bouquet of options, the RBI said it proposes to "mandate banks not to charge savings bank account customers for online transactions in the NEFT system with effect from January 2020".

It also plans to operationalise the 'Acceptance Development Fund' to increase acceptance infrastructure with from January 1, 2020.

A committee would also be set up to assess the need for plurality of QR codes and merits of their co-existence or convergence from both systemic and consumer viewpoints.

Further, the central bank has plans to permit all authorised payment systems and instruments (non-bank PPIs, cards and UPI) for linking with National Electronic Toll Collection (NETC) FASTags. "Going forward, this will facilitate the use of FASTags for parking, fuel, etc., payments in an interoperable environment," the statement said.

The RBI announcement comes on the third anniversary of government's historic decision to demonetise Rs 500/1,000. On November 8, 2016 the then Rs 500 and Rs 1,000 in circulation were banned, and the RBI came out with new 2,000 and 500 currency notes.

The Reserve Bank of India further said the benchmarking exercise undertaken by it reveals a high position enjoyed by the country in various parameters in the payment systems.

The banking regulator said it has facilitated acceptance of RuPay cards in Bhutan and will actively engage with the payment system regulators in other jurisdictions and share its experience to derive synergies and reduce the cost and time taken for inward remittances, especially in key remittance corridors.

end-of
Tags: 
demonetisation, digital payments, national electronic funds transfer, neft, fastags, unified payments interface, upi, reserve bank of india, rupay cards
Location: 
India, Maharashtra, Mumbai (Bombay)
Latest From Economy
Former RBI governor Urjit Patel has written a book titled Overdraft: Saving the Indian Saver.

Urjit Patel: Why our banks aren't saviours of the Indian saver

FIEO Director General Ajay Sahai said the global situation is likely to improve in the first half of 2020, which would have a positive impact on India's exports.

Exports to rebound in 2020 but growth to remain subdued

ICRA Economist Aditi Nayar expects moderation in vegetable prices to a large extent by early 2020. (Photo: File)

Inflation leaves consumers teary-eyed as pricey onions, food items bite

Most Popular

Mukesh Ambani 9th richest on Forbes' real-time billionaires list
Top credit card myths harmful for your financial well-being
Microsoft CEO Satya Nadella tops Fortune's Businessperson of the Year 2019
Employment growth slowed down in last two years: report
GST structure: key challenges and its solutions

Editor's Picks

Income tax e-filers drop by over 6.6 lakh in FY19: Official data
Swiping on your smartphone reveals a lot about you to your social media company
  • Read Financial Chronicle as it appears in print.
  • Subscribe, and get it delivered in the inbox everyday.
  • Politics, Plan And Policy
  • Markets
  • Companies
  • Economy
  • In Other News
  • Autos
  • Just In
  • Home
  • About Us
  • Contact Us
  • Terms of Service
  • Privacy Guidelines
  • Copyright © 2019 Financial Chronicle, All rights reserved
Developed & Maintained By Daksham