RRBs: Service Charges for Electronic Payments & Cheque Collection
Current · Source: Reserve Bank of India · RBI/2008-09/478 · issued 15 May 2009 · ~2 min read
Quick answerRBI enclosed DPSS circulars for RRBs prescribing charge frameworks for electronic payment products (RTGS/NEFT/ECS), outstation cheque collection, and transfer of surplus clearing funds under RFS 2007. These charges apply to inter-bank electronic transfers and surplus clearing fund transfers.
The rule, in the simplest words
RRBs (Regional Rural Banks) must follow the charge rules set by RBI for electronic payments like RTGS (instant big money transfer), NEFT (slow money transfer), and ECS (bulk payments like salary).
The same charge rules apply to moving extra money from clearing (daily bank settlement) to another bank under the Remittance Facilities Scheme (RFS) 2007.
Banks cannot charge more than what the October 8, 2008 circular says for these services.
RRBs must update their fee lists and tell all branches to use these fixed charges.
How it plays out — a real example
A forex & trade-finance officer in Indore at an RRB branch gets a call from a customer who wants to send ₹50,000 to another bank using NEFT. The officer checks the new charge list from RBI's October 8, 2008 circular and tells the customer the exact fee—no extra hidden charges—just like the rule says. Later, the officer also uses the same charge rule when the branch transfers its extra clearing funds to the main bank account.
What changed
RBI enclosed three DPSS circulars to RRBs detailing the charge framework for electronic payment products, outstation cheque collection, and transfer of surplus clearing funds. The charges for electronic products (RTGS/NEFT/ECS) were prescribed in the October 8, 2008 circular and are also applicable for transfer of surplus clearing funds under the Remittance Facilities Scheme (RFS) 2007.
What it means for you
RRBs must take the enclosed circulars for information and necessary action, meaning they should implement the prescribed charge framework in their operations. This standardisation ensures uniform pricing across banks for these services, impacting fee structures and customer costs.
What you must do
Review the enclosed DPSS circulars to understand the prescribed charge framework for RTGS/NEFT/ECS and outstation cheque collection.
Update your bank's service charge schedule for electronic payment products and transfer of surplus clearing funds to comply with the framework.
Ensure that charges for inter-bank electronic transfers, including transfer of surplus clearing funds under RFS 2007, are applied as per the October 8, 2008 circular.
Communicate the revised charges to relevant departments and branches for implementation.
Who it affects
Regional Rural Banks (RRBs), Branches handling outstation cheque collection and transfer of surplus clearing funds
❓ Common questions
Which circulars are referenced in this notification?
The notification references DPSS circulars dated January 8, 2008, June 20, 2008, and October 8, 2008, which prescribe the charge framework for electronic payment products, outstation cheque collection, and transfer of surplus clearing funds.
Do these charges apply to transfers under the Remittance Facilities Scheme (RFS) 2007?
Yes, the circular clarifies that the charges for electronic payment products are applicable for transfer of surplus clearing funds under the Remittance Facilities Scheme (RFS) 2007.
What should RRBs do with the enclosed circulars?
RRBs must take the enclosed circulars for information and necessary action, meaning they should implement the prescribed charge framework in their operations.
📜 Read the original circular — full text as issued by RBI
We enclose copies of circulars DPSS. CO. No. 1001 / 03.01.02 / 2007-08 dated January 8, 2008, DPSS. CO. No. 2092 / 03.01.02(P) / 2008-09 dated June 20, 2008 and DPSS. CO. No. 611 / 03.01.03(P) / 2008-09 dated October 8, 2008 issued by our Department of Payment and Settlement Systems (DPSS), Central Office, advising the framework of charges to be levied by banks for offering various electronic payment products, for outstation cheque collection services and transfer of surplus clearing funds, for your information and necessary action.
2. The framework of charges to be levied by banks for various electronic payment products (RTGS / NEFT / ECS) has been prescribed vide circular dated October 8, 2008 referred to above. These charges are also applicable to all inter-bank transfers using the electronic mode. It is clarified that these charges are applicable for transfer of surplus clearing funds under Remittance Facilities Scheme (RFS), 2007 also.
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-09/478 · issued 15 May 2009. The plain-English explanation above is BankPulse’s own independent summary.
Communicate the revised charges to relevant departments and branches for implementation.
⚙️ Operations
Update your bank's service charge schedule for electronic payment products and transfer of surplus clearing funds to comply with the framework.
Ensure that charges for inter-bank electronic transfers, including transfer of surplus clearing funds under RFS 2007, are applied as per the October 8, 2008 circular.
📜 Compliance
Review the enclosed DPSS circulars to understand the prescribed charge framework for RTGS/NEFT/ECS and outstation cheque collection.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Compliance officer at a bank this circular applies to (Regional Rural Banks (RRBs), Branches handling outstation cheque collection and transfer of surplus clearing funds), your first concrete step on “RRBs: Service Charges for Electronic Payments & Cheque Collection” is: “Review the enclosed DPSS circulars to understand the prescribed charge framework for RTGS/NEFT/ECS and outstation cheque collection.” (RBI issued this 15 May 2009).
Circular: RBI/2008-09/478 -- RRBs: Service Charges for Electronic Payments & Cheque Collection
Issued: 15 May 2009
Action required: Review the enclosed DPSS circulars to understand the prescribed charge framework for RTGS/NEFT/ECS and outstation cheque collection.
Action required: Update your bank's service charge schedule for electronic payment products and transfer of surplus clearing funds to comply with the framework.
Action required: Ensure that charges for inter-bank electronic transfers, including transfer of surplus clearing funds under RFS 2007, are applied as per the October 8, 2008 circular.
Action required: Communicate the revised charges to relevant departments and branches for implementation.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=4984&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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