RTGS service charges for members – w.e.f 01/oct/2011. Are you aware of it?

RTGS service charges for members – w.e.f  01/oct/2011. Are you aware of it?

Reserve Bank of India, DPSS, vide Notification No.RBI/2011-12/166,DPSS (CO) RTGS No.388/04.04.002/2011-2012, dt.September 05, 2011, has sought to introduce RTGS Service charges for members.

The notification can be accessed @ http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=6698&Mode=0

The main aim for the charges is twofold:-

01)  Recovery of operational costs;

02)  To bring in further efficiency in the operations and the liquidity flows in the RTGS system.

The second one is more important, and the various participants in the RTGS cycle i.e Remitting Banks, Remitting customers, Beneficiary Banks, Beneficiary Banks will take some time to adapt to.

The charges comprise of 3 components,

(i)                 Membership fee,

(ii)               Transaction fee and

(iii)              Time-varying tariff.

Yes, you have read it right, time-varying tariff. Time-varying tariff is common across other service industries, but this is the first of its kind in the banking industry.

  

The time-varying tariff  is as under:-

Block	Time of settlement at the Reserve Bank of India		Charge per transaction
	From	To
1	09:00 hours	12:00 hours	Nil
2	After 12:00 hours	15:30 hours	Rs 1.00
3	After 15:30 hours	17:30 hours	Rs 5.00
4	After 17:30 hours		Rs 10.00

The maximum charges that can be recovered from the customers including the time-varying tariff is,

RTGS Transaction	Maximum customer charges
Inward transactions	Free
Outward transactions
Rs.2 lakh to Rs.5 lakh	Rs.25 + applicable time varying tariff subject to a maximum of Rs.30/-.
Above Rs.5 lakh	Rs.50 + applicable time varying tariff subject to a maximum of Rs.55/-.

In my next post, will discuss in detail about the contents of this notification.