The Reserve Bank of India (RBI) has increased the minimum amount that can be transferred through the real time gross settlement (RTGS) facility among bank accounts. In its quarterly review, RBI increased the lower limit to Rs.2 lakh from Rs.1 lakh with effect from 15 November.
Money can be transferred from one bank account to another using RTGS and national electronic funds transfer (Neft) facilities. While RTGS transfers were restricted to high-value transfers of Rs.1 lakh and above, Neft was available for transfers less than Rs.1 lakh.
However, the maximum limit for Neft transfers has now been increased to Rs.2 lakh and the charges for Neft transfers between Rs.1 lakh and Rs.2 lakh have been reduced.
Currently, all banks pay a processing or a service charge to the central bank for electronic fund transfers which are passed on to customers. For fund transfers valued between Rs.1 lakh and Rs.2 lakh, RBI has decreased the service charge from Rs.25 to Rs.15. The fee for fund transfers worth more than Rs.2 lakh remains unchanged at Rs.25.
