What changed
RBI, which had not charged any fees for RTGS usage since inception, decided to levy service charges on outward transactions of members. A three-part fee structure was introduced: monthly membership fee, per-transaction fee based on volume bands, and a time-varying tariff based on settlement time. Inward transactions continue to be free.
What it means for you
Banks and other RTGS participants will now incur costs for outward transactions, which may affect their pricing strategies. The time-varying tariff incentivizes early settlement, potentially improving liquidity management. Members can pass on time-varying tariffs to customers but not membership or transaction fees, with maximum customer charges capped.
What you must do
- Update internal systems to calculate and apply the new RTGS service charges from October 1, 2011.
- Ensure customer-facing communication clearly states that inward RTGS transactions remain free.
- Implement time-stamping for all customer-initiated payment transfers to avoid disputes over time-varying tariffs.
- Review and adjust customer charges for outward RTGS transactions to stay within RBI-prescribed maximums.
- Prepare for monthly debits from your current account with RBI's Deposit Accounts Department.
Who it affects
All RTGS member banks (including cooperative banks), Primary Dealers, Clearing entities and special/other RTGS participants, Customers of RTGS members who initiate outward transactions
Can we pass on the membership fee or transaction fee to our customers?
No, RBI explicitly states that membership fees and transaction fees cannot be passed on to customers. Only the time-varying tariff can be recovered from customers, subject to the prescribed maximum charges.
What are the maximum charges we can levy on customers for outward RTGS transactions?
For transactions between ₹2 lakh and ₹5 lakh, maximum customer charge is ₹25 plus applicable time-varying tariff, capped at ₹30 total. For transactions above ₹5 lakh, maximum is ₹50 plus time-varying tariff, capped at ₹55 total.
When do these new charges take effect?
The service charges for RTGS members come into effect from October 1, 2011.