What changed
RBI decided to publish banks' service charges for electronic payment products (RTGS, SEFT, EFT, ECS) on its website to enable customer comparison. Banks must now report pricing for outward and inward remittances, whether charges are per transaction or slab-based, and any differential charges for inter-bank remittances. This is an ongoing exercise requiring updates whenever pricing or products change.
What it means for you
Banks must now disclose their fee structures for electronic payment services transparently, allowing customers to compare costs across institutions. This increases competitive pressure on pricing and may lead to standardization or reduction in charges. Banks need to ensure their internal systems can capture and report these details accurately and promptly.
What you must do
- Submit service charge details for RTGS, SEFT, EFT, and ECS (both outward and inward) to RBI within one week using the prescribed format.
- Clearly specify whether charges are per transaction or slab-based, and disclose any special inter-bank remittance charges.
- Notify RBI promptly whenever pricing changes or new products are introduced or withdrawn.
- Designate a responsible official to handle this reporting and ensure data accuracy.
Who it affects
All RTGS member banks, Banks offering ECS, EFT, SEFT services, Bank customers using electronic payment systems
What information do banks need to submit to RBI?
Banks must provide service charges for outward and inward remittances under RTGS, SEFT, EFT, and ECS, including whether rates are per transaction or slab-based, and any special charges for inter-bank remittances.
How quickly must banks respond to this circular?
Banks must send their reply within one week from the circular date (July 13, 2005), either by post or fax to 022-22691557.
Will this information be updated regularly?
Yes, RBI treats this as an ongoing exercise. Banks must inform RBI whenever there is a change in pricing or when a new product is introduced or withdrawn.