What changed
RBI observed widespread non-adherence to NEFT procedural guidelines through surveys and incognito visits. Many bank branches failed to display charges, staff were unaware of rules, and some large banks diverted walk-in customers to agents charging higher fees. RBI reiterated that all instructions under the Payment and Settlement Systems Act, 2007 must be followed in letter and spirit.
What it means for you
Banks face serious regulatory action if they continue to flout NEFT service norms, especially around walk-in customer access, charge display, and fee caps. The circular signals RBI's zero tolerance for practices that erode customer trust in the NEFT system. Banks must urgently audit branch-level compliance and retrain staff to avoid penalties.
What you must do
- Conduct immediate training for all branch staff on NEFT procedures, walk-in customer facility, and applicable charges.
- Display NEFT charges card prominently at all branches and agent locations, including vernacular language versions.
- Ensure NEFT application forms with clear instructions are available at every branch.
- Stop diverting walk-in or non-account holders to agents or service points that levy charges above RBI-mandated caps.
- Set up internal monitoring to track compliance with RBI's NEFT circulars and address complaints promptly.
Who it affects
All NEFT member banks (direct and sub-member), Branch managers and NEFT desk staff, Customer service and compliance teams, Agents and business correspondents handling NEFT transactions
What are the key customer service requirements for NEFT that banks must follow?
Banks must allow walk-in customers (non-account holders) to initiate NEFT, provide positive confirmation via SMS/email after credit, pay penal interest for delays, show NEFT credits/debits in passbooks/statements, and adhere to RBI-mandated charge caps.
What penalties can banks face for non-compliance with NEFT guidelines?
RBI views non-adherence seriously under the Payment and Settlement Systems Act, 2007. Penalties may include monetary fines, restrictions on NEFT operations, or other regulatory actions as deemed fit.
How should banks display NEFT charges to customers?
A printed charges card showing applicable NEFT fees must be displayed at all branches and locations where NEFT transactions are conducted. The card should also be available in appropriate vernacular languages for agents and business correspondents.