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NEFT Customer Charges Rationalised by RBI

Current · Source: Reserve Bank of India · RBI/2012-13/131 · issued 13 Jul 2012 · ~1 min read

Quick answerRBI capped NEFT customer charges from August 1, 2012: ₹2.50 for up to ₹10,000, ₹5 for ₹10,001–₹1 lakh, ₹15 for ₹1–2 lakh, and ₹25 above ₹2 lakh. Banks must pass volume benefits to customers.

The rule, in the simplest words

Banks can only charge a maximum fee for each NEFT transfer: ₹2.50 if the amount is ₹10,000 or less, ₹5 if it is between ₹10,001 and ₹1 lakh, ₹15 if it is between ₹1 lakh and ₹2 lakh, and ₹25 if it is above ₹2 lakh.
These limits replace the older, higher charges that some banks were still using, so customers pay less for electronic money transfers.
The RBI wants banks to share the savings from higher transaction volumes with customers, encouraging more people to use NEFT instead of cheques or cash.
All banks that offer NEFT, their customers (both retail and corporate), and the payment system operators must update their fee schedules, inform customers, and confirm that they follow the new caps.

How it plays out — a real example

A NEFT officer named Rohan in Jaipur sees a customer wanting to send ₹1.5 lakh to a relative in Delhi. Rohan checks the new fee schedule, confirms the charge will be ₹15, and explains to the customer that this is the lowest possible fee under the RBI rules, making the transfer cheaper than using a cheque.

What changed

RBI revised the maximum customer charges for NEFT transactions, replacing earlier caps from November 2010. The new slab-based structure sets lower maximum fees per value band, effective August 1, 2012.

What it means for you

Banks can no longer charge more than the prescribed maximums, which are lower than many were levying. This encourages electronic payments over paper instruments and supports financial inclusion by making remittances cheaper.

What you must do

Update NEFT fee schedules to comply with new maximum charges by August 1, 2012.
Communicate revised charges to customers and promote NEFT usage.
Ensure system changes reflect the slab-based caps accurately.
Acknowledge receipt of the circular and confirm compliance to RBI.

Who it affects

All banks participating in NEFT, NEFT customers (retail and corporate), Payment system operators

❓ Common questions

Regulatory timeline

Stated effective date effective August 1, 2012
Decoded by BankPulse 2026-06-18 18:42 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What are the new maximum NEFT charges per slab?

Up to ₹10,000: ₹2.50; ₹10,001–₹1 lakh: ₹5; above ₹1 lakh up to ₹2 lakh: ₹15; above ₹2 lakh: ₹25. These are exclusive of service tax.

When do these charges take effect?

The revised charges are effective from August 1, 2012.

Can banks charge less than the maximum?

Yes, the circular states these are the maximum charges banks may levy; they can choose to charge less.

📜 Read the original circular — full text as issued by RBI

Notifications - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College of Agricultural Banking Reserve Bank Staff College College of Supervisors RBI's Functions and Working Governors Deputy Governors Executive Directors Communication Policy of RBI Sources of Information ▶ Annual Publications Half-yearly Publications Quarterly Publications Monthly Publications Weekly Publications Occasional Publications SDDS NSDP Data Releases Publications available on Subscription General Information RBI History Museum ▶ The RBI Museum RBI Monetary Museum Notification ▼ Notifications Master Directions Master Circulars Amendment Directions Draft Notifications/Guidelines ▶ Draft Notifications/Guidelines Draft Directions (RE-wise) Index To RBI Circulars Standalone Circulars Circulars Withdrawn Press Releases Speeches & Media Interactions ▼ Speeches Media Interactions Memorial Lectures Podcasts Publications ▼ Biennial Annual Half-Yearly Quarterly Bi-monthly Monthly Weekly Occasional Reports Working Papers Legal Framework ▼ Act Rules Regulations Schemes Research ▼ External Research Schemes RBI Occasional Papers Working Papers RBI Bulletin History DRG Studies KLEMS State Statistics and Finances Statistics ▼ Data Releases Database on Indian Economy Public Debt Statistics Regulatory Reporting ▼ List of Returns Data Definition Validation rules/ Taxonomy List of RBI Reporting Portals FAQs of RBI Reporting Portals Home Notifications Notifications Withdrawn with effect from November 16, 2021, February 18, 2022, May 02, 2022, May 13, 2022, May 21, 2024, July 12, 2024 & October 01, 2024 ( 614 kb ) NEFT System - Rationalisation of Customer Charges RBI/2012-13/131 DPSS CO (EPPD) /98/04.03.01/2012-13 July 13, 2012 Chairman and Managing Director / Chief Executive Officer of all banks participating in NEFT Madam / Dear Sir, National Electronic Funds Transfer (NEFT) System - Rationalisation of customer charges Please refer to our circular DPSS (CO) RTGS No.1008/04.04.002/2010-2011 dated November 03, 2010 rationalising the customer charges applicable on electronic payment products. 2. The NEFT system, introduced in 2005, has seen exponential growth in recent years reflecting its popularity as well as increasing customer acceptance. Despite such growth, it is, however, observed that many banks continue to levy the maximum permissible charges to their customers. It is desirable that the benefits accruing on account of increasing volume of transactions are passed on to the customers so as to incentivise greater use of the electronic payment system in place of cumbersome paper-based mechanism like cheques/DDs. It is also considered necessary to provide the large number of people being covered under the financial inclusion programmes affordable financial services through an efficient remittance mechanism like the NEFT. 3. Accordingly, on a review in consultation with stakeholders, it has been decided to rationalise the customer charges levied by the banks for NEFT transactions as under: Value Band Maximum Charges (exclusive of service tax) Amounts up to ` 10,000/- ` 2.50/- Amounts from ` 10,001/- to ` 1 lakh ` 5/- Amounts above ` 1 lakh up to ` 2 lakh ` 15/- Amounts above ` 2 lakh ` 25/- 4. It may be noted that the charges indicated above are the maximum that can be recovered by banks from their customers, if they so desire. 5. All member banks are advised to encourage customers to take advantage of this facility. 6. These charges will be effective from August 01, 2012. 7. These directions are issued by the Reserve Bank of India, in exercise of the powers conferred by Section 18 of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007). Please acknowledge receipt and ensure compliance. Yours faithfully, (G. Srinivas) General Manager & Officer-in-Charge Related Press Release Jul 13, 2012 RBI rationalises customer charges for NEFT 2026 All Months January February March April May June July August September October November December 2025 All Months January February March April May June July August September October November December 2024 All Months January February March April May June July August September October November December 2023 All Months January February March April May June July August September October November December 2022 All Months January February March April May June July August September October November December 2021 All Months January February March April May June July August September October November December 2020 All Months January February March April May June July August September October November December 2019 All Months January February March April May June July August September October November December 2018 All Months January February March April May June July August September October November December 2017 All Months January February March April May June July August September October November December Archives 2016 All Months January February March April May June July August September October November December 2015 All Months January February March April May June July August September October November December 2014 All Months January February March April May June July August September October November December 2013 All Months January February March April May June July August September October November December 2012 All Months January February March April May June July August September October November December 2011 All Months January February March April May June July August September October November December 2010 All Months January February March April May June July August September October November December 2009 All Months January February March April May June July August September October November December 2008 All Months January February March April May June July August September October November December 2007 All Months January February March April May June July August September October November December 2006 All Months January February March April May June July August September October November December 2005 All Months January February March April May June July August September October November December 2004 All Months January February March April May June July August September October November December 2003 All Months January February March April May June July August September October November December 2002 All Months January February March April May June July August September October November December 2001 All Months January February March April May June July August September October November December 2000 All Months January February March April May June July August September October November December 1999 All Months January February March April May June July August September October November December 1998 All Months January February March April May June July August September October November December 1997 All Months January February March April May June July August September October November December 1996 All Months January February March April May June July August September October November December 1995 All Months January February March April May June July August September October November December 1994 All Months January February March April May June July August September October November December 1993 All Months January February March April May June July August September October November December 1992 All Months January February March April May June July August September October November December 1991 All Months January February March April May June July August September October November December Top Back to previous page More Links Bank Holidays Banking Glossary Citizen's Charter Complaints Contact Us COVID-19 Measures E-LMS Events FAQs Financial Education Forms IFSC/MICR Codes Important Websites Opportunities @ RBI RBI Clarifications RBI Kehta Hai RBI’s Vision and Values (1257 kb)--> Right to Information Act Tenders Follow RBI RSS Twitter YouTube Instagram Facebook LinkedIn &copy; Reserve Bank of India. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/131 · issued 13 Jul 2012. The plain-English explanation above is BankPulse’s own independent summary.

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Who does what — compliance checklist

💻 IT / Systems

Ensure system changes reflect the slab-based caps accurately.

📜 Compliance

Update NEFT fee schedules to comply with new maximum charges by August 1, 2012.
Communicate revised charges to customers and promote NEFT usage.
Acknowledge receipt of the circular and confirm compliance to RBI.

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 (All banks participating in NEFT, NEFT customers (retail and corporate), Payment system operators), your first concrete step on “NEFT Customer Charges Rationalised by RBI” is: “Update NEFT fee schedules to comply with new maximum charges by August 1, 2012.” (RBI issued this 13 Jul 2012).

Circular: RBI/2012-13/131 -- NEFT Customer Charges Rationalised by RBI
Issued: 13 Jul 2012
Action required: Update NEFT fee schedules to comply with new maximum charges by August 1, 2012.
Action required: Communicate revised charges to customers and promote NEFT usage.
Action required: Ensure system changes reflect the slab-based caps accurately.
Action required: Acknowledge receipt of the circular and confirm compliance to RBI.
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.

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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=7448&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.