From 2020, NEFT money transfer will be free: Digital payments to become cheaper with new initiatives of RBI
Sun Nov 10 2019 / By: Jigi YadavThe central bank of India has now made it mandatory for banks to not charge online NEFT transaction for savings bank customers. This mandate will come into effect from January 2020. In addition to this, RBI has also stated other measures to increase digital transactions such as Acceptance Development Fund being operational. This fund purposes to improve infrastructure in Tier-III- Tier-VI locations for accepting cashless payments. RBI has also created a committee for looking into the prospect of QR Code conversions, that are now created by individual payment Apps in the market.
There also lies a proposal meant to link all authorised payment systems, including non-bank PPIs (Prepaid Payment Instruments), UPI, cards and FASTags. FASTags (National Electronic Toll Collection) would also be facilitated for parking, fuel and all other similar purposes.
Furthermore, RBI asserted the volume of UPI transactions observed a year-on-year growth of 263% reached to 874 crores in the month of September. In this same period, NEFT transactions touched 252 crores that means a year-on-year growth of 20%.
As suggested by Razorpay data, Google Pay has the largest market share of 61.2% in October, tailed by PhonePe at 24.9%, PayTM at 5.8% and NPCI developed BHIM App (Bharat Interface for Money) sits at 3.66% in the market share.