In a meeting between the former finance minister, Pranab Mukherjee, and chiefs of various public sector banks, Mukherjee appealed to the banks to follow the step taken by Oriental Bank of Commerce in making electronic transfer of funds up to Rs. 1 lakh a free service for customers. Further, he suggested Reserve Bank of India that it should ensure that the charges on all electronic banking transactions are waived.
Paying heed to the finance minister's appeal, Bank of Baroda has decided to do away with charges on e-transfer of funds up to Rs. 1 lakh, the bank's Managing Director, MD Mallya confirmed.
Presently, banks charge a fee of Rs. 5 for outward transactions up to Rs. 1 lakh, Rs. 15 for such transactions between the amounts of Rs. 1 lakh to Rs. 2 lakh and Rs. 25 for transactions above Rs. 2 lakh, done through National Electronic Fund Transfer (NEFT).
For transactions done under Real Time Gross Settlement (RTGS), banks charge a fee of Rs. 25 for transactions between the amounts of Rs. 2 lakh to Rs. 5 lakh and for amounts above Rs. 5 lakh, a fee of Rs. 50 is levied.
However, private sector banks refuse to comment on whether they will remove charges on e- transactions or not.