What changed
The minimum value for RTGS customer transactions was increased from Rs 1 lakh to Rs 2 lakh. A new NEFT value band of Rs 1 lakh to Rs 2 lakh was created with a service charge of Rs 15 per transaction, down from Rs 25, making it Rs 10 cheaper than RTGS for that band.
What it means for you
Banks should expect a shift of transactions between Rs 1 lakh and Rs 2 lakh from RTGS to NEFT, reducing load on the large-value system. This change improves RTGS efficiency for high-value payments while offering customers a faster, cheaper alternative for mid-range transfers.
What you must do
- Update RTGS and NEFT fee schedules in your core banking system to reflect the new charges from November 15, 2010.
- Train branch and digital banking staff to proactively inform customers about the cheaper NEFT option for amounts between Rs 1 lakh and Rs 2 lakh.
- Monitor transaction volumes in both systems post-implementation to assess migration impact and adjust marketing efforts accordingly.
Who it affects
All banks participating in RTGS and NEFT, Retail and corporate customers using electronic funds transfer, Bank operations and product teams handling payment systems
What is the new RTGS threshold for customer transactions?
The minimum transaction value for RTGS customer transactions was raised from Rs 1 lakh to Rs 2 lakh, effective November 15, 2010.
How much will customers save by using NEFT for amounts between Rs 1 lakh and Rs 2 lakh?
Customers will pay Rs 15 per transaction via NEFT instead of Rs 25 for RTGS, saving Rs 10 per transaction.
Why did RBI make this change?
To position RTGS primarily for large-value payments and encourage retail transactions to move to NEFT, which offers near real-time settlement with multiple cycles and wider reach.