No charges on NEFT money transfer from January

To promote digital transactions, the RBI has asked banks not to charge savings bank account customers for online transactions in the NEFT or National Electronic Funds Transfer system with effect from January 2020.

Digital payments constituted 96% of total non-cash retail payments during the period October 2018 to September 2019.

During the same period, the NEFT and UPI systems handled 252 crore and 874 crore transactions with year on year growth of 20% and 263%, respectively.

The RBI had earlier proposed to make the service available on a 24×7 basis from December 2019.