Highlights of RBI announcements - Fusion - WeRIndia

The Reserve Bank of India (RBI) made several key announcements yesterday.

Here are the highlights of RBI announcements:

• RBI slashed the repo rate by 22-basis points to make it 5.75 per cent. It is the lowest repo rate that has been in nine years. The decrease in repo rate results in lowering interest rates on home and car loans.
• This was the third consecutive meet at which the RBI decided to cut the repo rate.
• Banks charge a certain amount on NEFT and RTGS transactions. But, in order to boost digital transactions, the RBI waived off charges on online money transfer.
• NEFT (National Electronic Funds Transfer) is used to transfer funds up to ₹2 lakh while the RTGS (Real Time Gross Settlement System) is intended for large fund transfers.
• State Bank of India charges ₹2.5 and ₹5 for NEFT transfers up to ₹10,000 and ₹1 lakh respectively.
• RTGS charges of SBI vary with the time of the day. For an amount of ₹2 lakh to ₹5 lakh, the SBI charges as follows: ₹25 if the transfer is done between 9:00 a.m. and 12:00 p.m., ₹26 for the transfer between 12:00 p.m. and 3:30 p.m., and ₹31 for the transfer between 3:30 p.m. and 4:30 p.m.
• If the amount is above ₹5 lakhs, then the charges will be ₹51, ₹52 and ₹56 for the above mentioned three times of a day.
• But, now RBI waived off these charges and asked the banks to pass on this benefit to customers.
• In order to meet the demands of customers on changing ATM charges and fees, the RBI decided to establish a committee to review them. The decision will be taken after the review.
• The RBI cut its forecast for GDP growth for the year 2019-20 as 7 per cent.

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