What is the NEFT service charges bank can charge?

Ans: Reserve Bank of India has waived the processing or service charges for member banks till March 31, 2011. Accordingly, member banks participating in NEFT need not pay any processing or service charges to Reserve Bank of India. Further, processing or service charges to be levied by the member banks from their customers have also been rationalised by Reserve Bank of India as under : –

a) Inward transactions at destination bank branches (for credit to beneficiary accounts)

– Free, no charges to be levied from beneficiaries

b) Outward transactions at originating bank branches (charges for the remitter)

– For transactions up to Rs 1 lakh – not exceeding Rs 5 (+ Service Tax)

– For transactions above Rs 1 lakh and up to Rs 2 lakhs – not exceeding Rs 15 (+ Service Tax)

– For transactions above Rs 2 lakhs – not exceeding Rs 25 (+ Service Tax)