RBI rationalises customer charges for NEFT

The Reserve Bank of India has rationalized charges that banks can levy on customers for transfer of funds through National Electronic Funds Transfer - NEFT.

In a notification issued in Mumbai, the RBI said as per the new rate system, banks can levy not more than 2 rupees 50 paise for funds transfer upto 10,000 rupees.

Charges for transfers beyond this limit would remain unchanged at 5 rupees for transfers between 10,001 to one lakh Rupees; 15 rupees for transfers between one lakh to 2 lakh rupees and 25 rupees for transfers beyond 2 lakh.

The new rates would become effective from 1st of next month.