India along with the Government of India, is planning as well as looking for various methods so that people of India can without any trouble turn towards making use of the electronic transactions & lessen the use of money. The reason behind this is that the Government of India is trying to turn India in to being a cashless economy as this would in turn reduce corruption, black money, terrorism & the likes.
Therefore, in another attempt to bring people towards accepting the electronic or the digital transactions, the public sector banks have been directed by the Government of India to lower the fees which banks charge for different forms of the electronic transactions. Moreover, these charges are stated to be lowered till the 31st of March, 2017.
Reduction in digital transaction charges
In a statement released by the Department of the Finance Services, the Ministry of Finance, it was clearly stated that promoting digital as well as the card payments apart from raising interests of the public towards digital transactions so as to turn India in to a better place to live.
Furthermore, the directive also stated that banks would not have to charge any sort of fees for the transactions which are settled on the IMPS or the Immediate Payment Service apart from the UPI or the Unified Payments Interface in excess of the rates which are charged for NEFT or the National Electronic Funds Transfer; when the transactions cross the Rs. 1, 000 mark whereas on the other hand, the service tax is being charged at actuals only.
In addition to the above stated aspects, the transactions which are made through USSD or the Unstructured Supplementary Service Data & when it is more than Rs. 1, 000 there would be another 50 paise discount on the stated rates. Therefore, Rs. 2. 5 fee would be charged per transaction for the NEFT transfers which are up to Rs. 10, 000.
On the other hand, for the transaction between Rs. 10, 000 but less than Rs. 1 lakh, the charges would be Rs. 5. In addition to this, Rs. 15 shall be the fees for the transactions between Rs. 1 lakh & Rs. 2 lakh. However, for the transactions which cross the Rs. 2 lakh mark, the charges are Rs. 25. Another aspect to be kept in the mind is that the service tax would also be applicable & this will be above the charges which have been already stated in the paragraph.
The above statements have been released after an RBI’s notification that went out last Friday. As a matter of fact, the customers would not be charged anything if the transaction is up to Rs. 1, 000 which is further settled on any of the following systems – USSD or UPI or IMPS. This rule will be applicable from 1st of January, 2017 to the 31st of March, 2017. It is now to see as to how things will turn in the near future.