In order to promote digital economy, HDFC bank has announced to make online transactions through RTGS and NEFT free of cost from November 1, 2017.
- On the other hand, bank has hiked various charges for cheque-related transactions as well as request for additional leaves for non-managed savings and salary accounts.
- Earlier, Rs 25 were charged for each transaction for Rs 2-5 lakh via RTGS and Rs 50 each for such money transfers over Rs 5 lakh.
- Online NEFT transactions attracted a fee of Rs 2.5 for less than Rs 10,000, Rs 5 for Rs 10,001-1 lakh and Rs 15 for above Rs 1 lakh to Rs 2 lakh.
- On cheque book issuance one chequebook of 25 leaves can be availed for free only once in a year in contrast to two such chequebooks.
- The cost of requesting an additional chequebook (25 leaves) has been kept unchanged at Rs 75 each.
- If a cheque is returned due to insufficient funds will now attract a penalty of Rs 500 each.
- In cases where cheques deposited are returned unpaid, the charge has been raised to Rs 200 per instance from the Rs 100 earlier.
What is NEFT?
- It stands for the nation-wide payment system.
- Customers of a bank can transfer funds to others though self-account.
- It is applicable to both Account holders and Non-Account holders.
- Funds are transferred through electronic media
- Funds are in 12 slots on weekdays and 6 slots on Saturday
- NEFT service can be availed by Corporates, Firms, whose bank is entitled with NEFT payment system.
What is RTGS?
- It stands for Real Time Gross Settlement
- In RTGS, processing of instructions starts immediately
- Settlement of fund transfer occurs according to individuals basis or it can be transferred instantly. There is no such time slot.
- One can transfer a minimum of Rs.2 Lakh using RTGS
