New NEFT Service Charges w.e.f 01/08/2012 – Be ready for less!!

NEFT was introduced to India's banking customers in 2005. Over the years, the volumes have zoomed up with many of our countrymen enjoying the speed of Safe ePayments.

Way back in 2008, Reserve Bank of India, rationalized the Service Charges on Electronic Payment Products.

With the increasing volumes and keeping in mind the demand from the customers, RBI today, has announced fresh rationalization of NEFT service charges.

The RBI notification number is RBI/2012-13/131 DPSS CO (EPPD) /98/04.03.01/2012-13, and can be viewed here.

Value Band	Maximum Charges (exclusive of service tax)
Amounts up to `10,000/-	`2.50/-
Amounts from `10,001/- to `1 lakh	`5/-
Amounts above `1 lakh up to `2 lakh	`15/-
Amounts above `2 lakh	`25/-

It is observed few banks are charging customers for NEFT transactions via their Net banking sites, and the majority of the transactions are below `10,000/-.

Hence, to encourage small ticket transactions, RBI has introduced a new slab of upto `10,000/-