Reduce digital fund transfer charges: Govt to public sector banks

Reduce digital fund transfer charges: Govt to public sector banks The finance ministry on Wednesday asked state-owned banks to reduce fees on payments made through Immediate Payment Service (IMPS) and Unified Payments Interface (UPI). Transaction fee on these payment modes should be restricted to the extent that is applicable for NEFT fund transfer of over Rs 1,000, the ministry told the banks.As per RBI norms, NEFT transfers of up to Rs 10,000 attract Rs 2.5 fee. From Rs 10,000-1 lakh the fee is Rs 5; on Rs

1-2 lakh it is Rs 15, and beyond Rs 2 lakh it is Rs 25. Service tax is charged in addition to this. For Unstructured Supplementary Service Data (USSD) transactions above Rs 1,000, the ministry said a further discount of 50 paise on these rates shall apply. USSD is mobile short code message and used mainly for banking services on feature phone. The USSD fee is Rs 1.50, which has been waived till December 30, 2016.