NEFT, RTGS & IMPS Charges Waiver: RBI Circulars, Foreclosure Waivers & Payment Rules

The RBI has issued specific guidelines to ensure that customers benefit from the elimination of transaction charges on digital payment platforms. Here are the key highlights:

• NEFT and RTGS Waivers: As per RBI directives, banks are prohibited from levying charges on NEFT and RTGS transactions initiated through internet banking and mobile banking channels.
• IMPS Transactions: The use of IMPS for real-time payments allows customers to transfer funds instantly without incurring additional charges, making it ideal for urgent transactions.
• Encouragement of Digital Payments: These waivers aim to promote financial inclusion and reduce the dependency on cash transactions.

Understanding the RBI circular on NEFT and RTGS charges waiver

The RBI issued a circular to waive charges on NEFT and RTGS transactions conducted via digital channels. Here is a breakdown of the key details:

How NEFT and RTGS charges waiver by RBI benefits your loan repayments

The waiver on NEFT and RTGS charges has a direct impact on loan repayments, making it easier for borrowers to manage their financial obligations. Here is how:

• Cost Savings: Borrowers can now repay their EMIs without worrying about additional charges, making the process more affordable.
• Convenience: Online platforms allow easy and quick fund transfers, reducing the need to visit bank branches.
• Warning: Ensure that your payments are made well before the due date to avoid late penalties, as transaction delays can still occur in rare cases.

IMPS charges waiver: Real-time payments for urgent EMI settlements

IMPS provides a reliable solution for urgent EMI payments. The RBI has also eliminated charges on IMPS transactions conducted via digital modes. Below is a summary of its benefits:

The Finance Act of 2019 introduced a waiver on Merchant Discount Rate (MDR) charges to encourage digital payments among small merchants. This initiative complements RBI’s efforts to promote a cashless economy. Here are the key points:

• Applicability: MDR charges are waived for transactions made through RuPay debit cards and UPI (Unified Payments Interface) for businesses with an annual turnover of up to Rs. 50 crore.
• Cost Reduction for Merchants: Small merchants can accept digital payments without incurring additional costs, making it easier to transition to cashless transactions.
• Customer Benefits: Customers can make payments conveniently without worrying about additional fees.

Warning: Use waived digital channels to pay your EMI on time

While the waivers on NEFT, RTGS, and IMPS charges make digital payments more affordable, timely EMI payments remain crucial. Here are some tips to ensure you never miss a payment:

• Set Reminders: Use mobile apps or calendars to set reminders for your EMI due dates.
• Automate Payments: Opt for auto-debit facilities to ensure your payments are made on time.
• Avoid Delays: Even though digital payments are fast, technical issues can cause delays. It is advisable to make payments a few days in advance.

Request for waiver of foreclosure charges and early repayment charge waiver

Foreclosure charges can be a financial burden for borrowers looking to repay their loans early. Here is how you can request a waiver:

• Check Eligibility: Review your loan agreement to determine if foreclosure charges apply to your loan type.
• Contact Your Lender: Reach out to your bank or financial institution to request a waiver. Provide valid reasons, such as financial hardship or early repayment benefits.
• Submit a Written Request: Draft a formal request letter, including your loan account details and justification for the waiver.

Steps to initiate a digital transfer for loan payments

Follow these simple steps to make a digital transfer for your loan payments:

1. Log in to your online banking or mobile app using your registered credentials.
2. Select the ‘Fund Transfer’ option and choose between NEFT, RTGS, or IMPS.
3. Enter your loan account details and the amount to be paid.
4. Verify the transaction details and confirm the payment.
5. Save the transaction receipt for future reference.