RBI Moves to Boost Digital Payments, no fees on NEFT from January 2020

In the new year, customers can get a new gift from banks in the new year, not on NEFT since January 2020. From January 2020, the customer will not have to pay any fee for transactions made through NEFT from banks. The Reserve Bank of India (RBI) has moved a resolution in this regard to promote digital transactions on the third anniversary of demonetisation. The central bank has also proposed to make necessary arrangements for using fast tags for payment at parking and petrol pumps. Between October 2018 and September 2019, digital payments in total non-cash retail payments have been 96 per cent.

Transactions from NEFT increased by 20 per cent

The National Electronic Fund Transfer (NEFT) and Unified Payment Interface (UPI) system has undergone transactions of Rs 252 crore and Rs 874 crore respectively during the same period. On an annual basis, neft transactions have increased by 20 per cent and UPI by 263 per cent. The central bank said in a statement that this significant increase in payment systems is due to a number of steps to be taken by the Reserve Bank in this regard.

In order to empower every citizen, the Reserve Bank has now directed banks not to charge customers for online transactions from savings accounts under the NEFT system. In addition, the central bank also informed about the facility of payment of RuPay cards in Bhutan.

Digital payments increase in India

It may be noted that on November 8, 2016, the government took a historic decision and closed old notes of Rs 500 and Rs 1,000. Instead, a new rs 2,000 and Rs 500 note was put into circulation. The number of digital payments in India has increased considerably since demonetisation. Dilip Asbe, CEO and MD, National Payments Corporation of India (NCPI), told CNBC TV-18 that the institution is considering expanding globally. He also said that the institution will launch a pilot project in 6 to 9 months.

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