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
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.
