AMN / MUMBAI

Fund transfer through RTGS and NEFT systems is all set to become cheaper from Monday July 1after the Reserve Bank of India decided it will not impose any charges on such transactions.

The real-time gross settlement (RTGS) system is meant for large-value instantaneous fund transfers, while the national electronic funds transfer (NEFT) system is used for fund transfers of up to 2 lakh rupees.

Currently, the RBI levies minimum charges on banks for transactions routed through its RTGS and NEFT system. Banks, in turn, levy charges on their customers.

The RBI has also constituted a high-level committee under IBA Chief Executive VG Kannan to examine ATM charges and fees by banks amid demands for reviewing the levies.