RBI Orders All Banks To Make NEFT Free; FASTags To Be Linked With eWallets, UPI, Debit/Credit Cards!

In another big push for digital payments, RBI has made two crucial announcements, which will positively impact digital transactions, across the nation.

NEFT has been made free for all bank customers, and this has been ordered by RBI to all banks. 

On the other hand, FASTags will be now made universally connected with all prominent modes of digital payments.

Checkout the details..

NEFT Will Be Free For All

Along with IMPS, NEFT or National Electronic Funds Transfer is the most used mode of digital payments.

RBI has now ordered all banks to make NEFT free for all. This means, that no bank can charge for NEFT now.

This has been made effective January 2020.

Note here, that RBI had stopped charging for NEFT effective July, 2019. The small fee which RBI charged from banks for carrying NEFT fund transfers, was withdrawn.

However, not every bank transferred this waiver of NEFT charges to the end customers. While some banks made it free, other made it free only for some selected customers, while most of the banks charged upto Rs 2 for every transfer, which made NEFT as a less favourable option for low-value transactions.

But now. NEFT has been made free, and is available 24*7.

This is seen as a big boost for Make in India vision.

FASTAgs To Be Universally Connected

National Electronic Toll Collection (NETC) FASTags, which have been made compulsory for all vehicles in India, will be soon universally connected with digital payment platforms.

Often described as Aadhaar for vehicles, FASTags can be now linked with UPI, eWallets and credit/debit cards of all banks.

This way, FASTags will act as a mini-wallet, which can be used for making payments at petrol pumps, parking and more.

Hence, in a way, FASTags are being made interoperable with all other digital mode of payments, and this will certainly save time for all.

Once FASTags can be linked with UPI or eWallets, then there will be less waiting time at the tolls, as the amount will be automatically deducted from the tags, as well as, money would be automatically uploaded as well.

This will also save time at petrol pumps, where vehicle owners can now seamlessly pay for the fuel, via one OTP.

More details are awaited.

Source