Date: 08/10/2008
Levy of Service Charges for Electronic Payment Products and Outstation
Cheque Collection

RBI / 2008-09 / 207
DPSS.CO.No. 611 / 03.01.03(P) / 2008-09

October 8, 2008

The Chairman and Managing Director / Chief Executive Officer
All Scheduled Commercial Banks including RRBs /
Urban Co-operative Banks / State Co-operative Banks /
District Central Co-operative Banks

Madam / Dear Sir,

Levy of Service Charges for Electronic Payment Products and
Outstation Cheque Collection

With immediate effect, the framework of charges to be levied by banks for
offering various electronic products and for outstation cheque collection
service shall be as under : 

1. Electronic products(HYPERLINK
"http://simpletaxindia.blogspot.com/2008/04/faqs-for-rtgs-neft.html"read
more about RTGS/NEFT/FAQ)

a) Inward RTGS / NEFT / ECS transactions free, no charge to be levied.

b) Outward transactions 




(i)
RTGS Rs. 1 to 5 lakh
not exceeding Rs. 25 per transaction

Rs. 5 lakh and above 
not exceeding Rs. 50 per transaction

(ii)
NEFT Up to Rs. 1 lakh
not exceeding Rs. 5 per transaction

Rs.1 lakh and above
not exceeding Rs. 25 per transaction


c) Banks may prescribe charges not higher than cheque return charges for ECS
debit returns.

d) These charges shall be applicable for all types of transactions,
including inter-bank funds transfers.

2. Outstation cheque collection





a)
Up to Rs. 10,000 
not exceeding Rs. 50 per instrument

Rs. 10,000 to Rs. 1,00,000
not exceeding Rs. 100 per instrument

Rs.1,00,001 and above
not exceeding Rs. 150 per instrument


b) The above charges will be all inclusive. No additional charges such as
courier charges, out of pocket expenses, etc., should be levied from the
customers. 

c) To reduce the clearing cycle and to promote electronic modes of payment,
the drawee banks should use electronic modes like RTGS / NEFT, wherever
available, to remit proceeds to the collecting bank branch.

d) Banks may make increased use of Speed Clearing and National Clearing
facilities for providing efficient service.

3. The above charges are applicable only to transactions originated and
payable within India.

4. The provisions of this circular shall not be applicable to cash handling
charges levied by banks for handling large value cash transactions.

5. No bank should refuse to offer the products to its customers or decline
to accept outstation cheques deposited by its customers for collection.

6. 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), without prejudice to permissions / approvals, if
any, required under any other law.


Yours faithfully

(G. Padmanabhan)
Chief General Manager

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