E-payment likely to gain currency as RBI cuts fee

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,type=9 ##)NEW DELHI: Electronic payment services are being more attractive. Consumers will not be charged any fee now for receiving money from other bank accounts. Even the sender would have to shell out less with the Reserve Bank of India (RBI) recently slashing charges for electronic fund transactions through real time gross settlement (RTGS), national electronic fund transfer (NEFT) and electronic clearing services (ECS).

With growing interest in online transactions, RBI has fixed uniform rates for various electronic payment services offered by banks. While no charge can be levied for inward (payee) RTGS, NEFT or ECS transactions, the apex bank has capped fee for outward (payer) dealings at Rs 50 for every RTGS transaction and Rs 25 for NEFTs. Currently, banks such as SBI and ICICI charge payee Rs 100 and Rs 25 for every inward transaction. For outward transaction, the fee used to go up as high as Rs 1,500 per RTGS transaction.

RTGS is a funds transfer system where money is transferred from one bank to another on a real time and on gross basis. The RTGS system is primarily for large-value transactions where minimum dealing is of Rs 1 lakh. NEFT operates on a deferred net settlement basis where settlements take place at a particular point of time. It is generally for transactions of lower value.

According to IDBI Bank CFO R K Bansal, RBI���s move to streamline this process would provide the required impetus for advancement of e-payments. ���It is also good for the banks as processing a cheque is more expensive and if more people use the e-payment system it will also bring down the cost for banks,��� he said.

Some lenders such as Yes Bank have already initiated discussions with a few co-operative banks to act as their RTGS/ NEFT clearing partner. ���This move of RBI will not only ensure settlement risk mitigation as more and more banks will now actively work on the electronic payment format but also encourage more customers, both retail and corporate, to adopt the e-payment system,��� Yes Bank president (transaction banking) Suresh Sethi said.