Reserve Bank of India removes charges on NEFT and RTGS to promote digital transactions. RBI announces these as part of its measures for broadening and deepening the financial markets.
Key RBI announcements on Charges on NEFT and RTGS to promote Digital Transactions:
1) To promote digital transactions, the RBI scraps charges on NEFT and RTGS to promote digital transactions. The Reserve Bank levies minimum charges on banks for transactions routed through its RTGS and NEFT System for other fund transfers.
2) This move will make money transfer through RTGS and NEFT cheaper. RBI says that banks will need to pass the benefits to their customers. In this regard, RBI will issue instructions to banks within a week.
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After no Charges on NEFT and RTGS, RBI is reviewing on the fees charged for usage of ATMs:
The RBI is also reviewing the fees charged for usage of ATMs. RBI says that there have been continuous demands to change the ATM charges and fees. Therefore, to address these demands, RBI has set up a committee. The committee will be headed by the chief executive officer of Indian Banks’ Association (IBA). This committee will examine the entire scope of ATM charges and fees. The deadline for the committee is within two months of its first meeting.
On Tap Licensing of Small Finance Banks:
As per a review of the performance of Small Finance Banks, RBI says that they have achieved their priority sector targets and thus attained their mandate for furthering financial inclusion. As per RBI, there is a case for more players to be embraced to enhance access to banking facilities to the small borrowers; hence, to encourage competition. ‘On tap’ licensing of small finance banks, RBI will issue draft guidelines by the end of August 2019.
Foreign Exchange Trading Platform for Retail Participants:
Clearing Corporation of India (CCIL) has developed a forex trading platform to ensure transparent pricing for users of foreign exchange, such as Small and Medium Enterprise (SME) exporters and importers, individuals, etc. It is now trial mode for the users. On the successful trial of the forex platform, it will be available to users for transactions from early August 2019.