RBI puts out RTGS rates of banks on website
MUMBAI: Most public sector banks appear to be charging significantly higher fees for large value transfer of funds compared to private and foreign banks. This is evident from the data disclosed by the RBI regarding the fees different banks charge on fund transfer facilities.
The RBI website on Thursday disclosed the minimum and the maximum charges of banks on real time gross settlement (RTGS) system, through which funds are transferred between two centres within a couple of hours. The central bank has also given charges for electronic funds transfer (EFT) where transfers take over a day.
Under RTGS, among PSU banks, State Bank of India would offer the lowest maximum charge of Rs 1,500 (from September 10), followed by Canara Bank and Indian Overseas Bank at Rs 2,000. Among private players HDFC Bank is offering a maximum of Rs 500 for corporate clients, while Citi charges a flat rate of Rs 250.
Punjab National Bank seems be the most expensive with its maximum charge under RTGS pegged at Rs 22,500 followed by Andhra Bank at Rs 16,530 for transactions over Rs 50 lakh.
According to bankers, the move to disclose charges is aimed at enhancing competition and creating transparency.
SBI with 20% market share has decided to reduce its maximum RTGS charges from Rs 11,020 to Rs 1,500, but hiked the minimum charge to Rs 500 from Rs 350. However, its maximum charge under the EFT continues to be as high as Rs 11,020.
ICICI Bank has pegged its maximum and minimum charge at Rs 2,500 and Rs 250 respectively for RTGS. For EFT, it has a flat charge Rs 50 up to Rs 2 crore and Rs 100 above for anything above that. However, ICICI Bank is among the very few banks, which is charging (a flat rate of Rs 25) for inward remittance under RTGS. HDFC Bank is offering competitive rates for corporate clients as compared to retail clients under RTGS.
For corporates it has pegged a minimum rate of Rs 50 and maximum of Rs 500, while for retail clients the band is Rs 250 and Rs 2,500.
Bank of India, Indian Bank and Syndicate Bank are charging a maximum of Rs 10,000 each under RTGS, while for Bank of Baroda and Vijaya Bank it is Rs 6,000 for over Rs 10 lakh.
At present, 7,500 branches of different banks provide the RTGS facility. RBI plans to increase this to 10,000 by March '06. “Although central bank provides the software for RTGS and it is also the service provider for EFT, so far it has not charged banks for it. The charges levied by banks to customer is mainly on account of their hardware and establishment cost,” said a senior banker.
Source: The Economic Times