Finance Minister, Pranab Mukherjee has asked banks to make all electronic transactions free of charge. The minister was addressing chief executives of public sector banks and financial institutions.
The minister also appreciated Oriental Bank of Commerce, which recently removed charges on NEFT and RTGS transactions upto Rs. 1 lakh. He further added, "I am confident that all the public sector banks would follow this excellent initiative. I would also urge upon the Reserve Bank of India to proactively work on this front and to see that all electronic banking transactions are possible without any charges being levied."
Mr. Mukherjee also requested the banks to minimize the use of cash as much as possible. He also stated that farmers should be able to make purchases using Kissan Credit Cards (KCC)- cum debit cards without using cash.
He also emphasized on a five point agenda, which includes financial inclusion for passing of the benefits, KCC for all farmers, implementation of education loans, importance of RRBs in issuance of credit cards, and role of state owned banks in promoting electronic transfers.