If you are customer of ICICI or HDFC banks, you would have noticed that while transferring the money to third party banks, there is a fixed amount of fees is deducted as part of the transactions. This has been implemented very recently by the banks after a long hesitation, sooner we may see most of the banks will follow the action. In a recent announcement, RBI had informed the banks with the limitation of charging for the online transactions.
Though it not a major change, it is important for a customer to know the details of the charges levied on your account. It is come to my attention when discussing with many of the readers, very few aware of the charges for online transactions and many think doing online transactions are free of cost. At least, till now it is partly true, but going forward it may change.
Existing Charges on NEFT
- up to Rs. 1,00,000 — Rs. 5 + Service Tax
- Rs. 1,00,000 to Rs. 2,00,000 — Rs. 15 + Service Tax
- Above Rs. 2,00,000 — Rs. 25+ Service Tax
New Charges on NEFT from August 1, 2012
In the recent announcement, RBI has changed the charges up to Rs. 10000. The new charges as follows:
- up to Rs. 10,000 — Rs. 2.5 + Service Tax
- Rs. 10,000 to Rs. 1,00,000 — Rs. 5 + Service Tax
- Rs. 1,00,000 to Rs. 2,00,000 — Rs. 15 + Service Tax
- Above Rs. 2,00,000 — Rs. 25+ Service Tax
As of now, many of the banks are not levying the charges to the customers. But, looking into the interest if the banks, most of the private banks may start levying the charges on online money transfer. If you are transferring within the same bank, there won’t be any charge. If you have account with HDFC bank and willing to transfer money to another HDFC bank account, there won’t be any charges. Another important point is, as some of the readers noted that, this charges has been levied from the ICICI bank’s salary account too.
It is very bad news for the bank customers since online transfer means saving lot of time and energy. With the advancement of the technology, why there is necessity to charge for the online transactions? Banks want customers to walk in their branches for all the transactions?. RBI needs to review this decision on charging for the online transfers.
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July 17, 2012 at 7:42 am
Dear sir/madam,
you have done a very good job. for RTGS/NEFT bank to bank the charges are varying. most of the banks fixed Rs.25 for any amount. look here my experience in STAT BANK OF INDIA for Rs One lac the charges debited is Rs.25. let it be but Alas money was NOT TRANSFERRED from 12.00 noon till the day last fven up to 9.00pm of that day. only on next day morning after repeated calls they have transferred the funds sating the reason ‘SERVER FAILED”. ICICI bank is not a good bank cheating the public and making profit why the public r going to that bank where as so many are there for best service.
thank you very much for the informations provided. kind regards, prabakaran
July 17, 2012 at 7:56 am
Hello Prabaharan,
Yes. You are correct.
This charge should not be levied. Also now RBI has increased the NEFT clearing window to 11 in a day. It starts from morning 9 to evening 7. Banks has to clear the NEFT very fast.
Thanks,
Krishna
July 17, 2012 at 9:05 am
Technology is being used to do transfer and hence I do not see any reason for the charges applied. If RBI has to apply NEFT charges, they can do so in similar fashion as they allow 5 transactions free of cost on ATM cards.
July 17, 2012 at 1:23 pm
Hello Aparna,
Your idea is good. They can provide monthly few free transactions and charge for the extra transfers.
Thanks,
Krishna
July 17, 2012 at 9:22 am
well to implement the internet banking, banks had to invest a hell lot of money, and the fees they are charging for NEFT is quiet nominal in my sense. To transfer Rs. 10,000/- I have to travel 5 Km. to the nearest branch spending 20 mins and minimum Rs.50/-, I would rather prefer to use the paid NEFT facility.
July 17, 2012 at 1:21 pm
Bipratip Choudhury,
Banks save lot because of money is transacted through online. They need not increase the employees in the branchs. The crowd will be reduced. Banks are already making lot of money from other part of the business, this would affect the customers lot who are doing more number of transactions.
Thanks,
Krishna
July 19, 2012 at 6:02 pm
After all most banks stopped SERVICE to customers. Even SBI, CITI, ICICI, the Govt. every body seems to be doing business on public monies and levying charges for their own profits….If you look at Meeseva introduced in AP, we can understand. As I found, ICICI clearances are faster than most other Govt. banks SBI, SBH, Andhrabank, affiliated banks.
July 18, 2012 at 6:46 am
Private banks not only levy charges for online funds transfer. If customers do walk in to branches, there is a fee calles Branch Walk in charge levied to the customers by HDFC, Citi bank. Please be aware of it too. I hope RBI is discussing to remove the online charge for transaction below 1,00,000.00 rupee. Please check it out..
July 19, 2012 at 7:27 pm
Hello Balamurugan,
Yes. New charges are rolled out by the banks. People are already impacted by the inflation.
Thanks,
Krishna
July 18, 2012 at 2:54 pm
Thanks a lot for information, can you please let me know what will be the service charge applicable for ICICI Bank ?.
July 19, 2012 at 7:29 pm
Hello Naresh jaiswal,
It is same what is mentioned above in the article.
Thanks,
Krishna
August 13, 2012 at 11:38 pm
I have read in one of article before 4-5months stating that in India only 45% people alone have Savings bank account.In that how many will be used often and in that 15% would have Net Banking and also all the Net Banking account holders are not using frequently and in that 15% only 5%-7% alone will use NEFT, so much changes will not happen other than hike in charges.But still India is a growing country Bank account holders and their needs are getting increased and in progress of development.
October 8, 2012 at 11:23 am
It was given 2.5 + service tax for Rs.10000 and Rs 5 + Service tax for 10000 – 1lac etc but the how much is the service tax is not given in the article. Can you please let me know how much is the service tax?