Government limits Charges On Electronic Fund Transfer Over Rs. 1,000

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Government has asked public sector banks to restrict fee on those payments which are made through IMPS and UPI. At present, according to RBI norms following are the fee charged by the banks on different mode of transfer

NEFT Transfer of up to Rs 10,000 attracts fee of Rs 2.5

Transfer between Rs 10,000-1 lakh = Rs 5 as fee

Electronic Fund Transfer Over Rs. 1,000

Electronic Fund Transfer Over Rs. 1,000

Transfer between Rs 1-2 lakh – Rs 15

Beyond Rs 2 Lakhs – Rs 25

In addition to the fee mentioned above, service tax is also charged.

Those who are doing Unstructured Supplementary Service Data (USSD) transactions above Rs. 1,000,will be offered discount 50 paise. At present, USSD fee is Rs 1.50 which wis not applicable till December 30, 2016. In its official statement, Finance ministry has given direction to all Public sector banks stating that these banks should not charge fee for transaction made through Immediate Payment Service (IMPS) and Unified Payments Interface (UPI) over the rates set for National Electronics Funds Transfer (NEFT) for transactions above Rs 1000. Service Tax will remain as it is on all the transactions.

To those who are new to mode of payment such as IMPS, it is an interbank electronic instant mobile money transfer which is done through mobile phones. Unique Payment Interface is another facility offered by the banks where a user can make online payment to the merchants from their bank accounts without having to feed card or net banking/wallet details and IFSC code. Banks will need to follow these directions up to March 31, 2017.

This is not the first step that government has taken in order to encourage digital payment and e-transactions. Couple of days back Niti Aayog announced two schemes -Lucky Grahak Yojana and Digi Dhan Vyapari Yojana which will come in action from December 25th. Any transaction between Rs 50 and Rs 3000 will be applicable for this scheme. All the transactions done using RuPay, USSD, UPI and Aadhaar Enabled Payment System (AEPS) will be eligible for participating in this scheme. However, those individuals who are making payment through credit and debit card or e-wallets will not be covered under this scheme.

 

 
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An MBA in finance, I like to cover the wide range of topics related to Taxation, SEBI, Finance and anything that is Public Helpful. The motive is always to make it simpler for the taxpayers understand the system better and take informed decisions.

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