DPSS (CO) EPPD No. /2649/ 04.03.01/2010-11,

Dated- June 02, 2011

Retail Electronic Payment Systems – NEFT / NECS / RECS / ECS – Levy of Processing Charges

As you are aware, the Reserve Bank of India has been waiving processing charges for retail electronic payment products (NEFT, NECS, RECS and ECS) since the year 2006 in order to promote the usage of these systems. The last waiver was valid up to March 31, 2011.  In recent years, the usage of these products has increased considerably.  While the originating banks are levying charges on their customers, there has been no compensation paid to the processing centers and destination banks. There has been demand for compensation from the paying banks / processing centres.

2. On a review and after consultation with stakeholders, it has now been decided to permit  Clearing Houses / processing centers to levy charges on the originating banks as under :-

  • 25 paise (exclusive of service tax) for every outward transaction
  • 25 paise (exclusive of service tax) for every return transaction

3. As regards the compensation to destination banks, it has been decided that destination banks may be paid by the originating banks as below :-

  • 25 paise (exclusive of service tax) for every credit transaction
  • 50 paise (exclusive of service tax) for every debit transaction

The necessary data on number of transactions originated and received by each bank will be provided by Clearing Houses / Processing Centers on a monthly basis. Using this, banks may put in place necessary systems to calculate the compensation payable / receivable to / from other banks and settle the same amongst themselves.

4. The charges may be collected on a monthly basis. The participant banks are not permitted to pass on these charges to customers.

5. These charges will be applicable from July 01, 2011. All Clearing Houses / processing centres are required to put in place a system of recovering their processing charges, and also dissemination of suitable data to banks as above.

6. Please confirm the receipt of this letter and action taken in the matter.

Yours faithfully

(G. Padmanabhan)
Chief General Manager

More Under Fema / RBI


  1. Pradeep says:

    Already HDFC Bank is charging Rs.5/- per NEFT / EFT transaction for the last one year. Other Banks like HSBC or Citibank are not charging online transfer charges. Is this approved by RBI ?????. Based on the above comments, these charges are coming into effect only from 1st July and the charges should not be passed on to the customers….!

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