Executive Summary:
This circular from the Reserve Bank of India (RBI) announces a rationalization of RTGS service charges for members and customers. The changes include revised monthly membership fees and the introduction of time-varying processing charges for outward transactions. These revisions will take effect from April 1, 2016.
Key Points / Main Content:
Membership Fees:
* Monthly membership fees are marginally enhanced.
* For Scheduled Commercial Banks (SCB): ₹5,000 (exclusive of service tax).
* For banks other than SCBs, Primary Dealers, clearing entities, other special entities: ₹2,500 (exclusive of service tax).
Processing Charges:
* Inward transactions remain free for members.
* Outward transactions attract a flat processing charge capped at ₹0.50 (exclusive of service tax) plus a time-varying charge.
* Time-varying charges for outward transactions:
* 08:00 - 11:00 hours: Nil
* After 11:00 - 13:00 hours: ₹2.00
* After 13:00 - 16:30 hours: ₹5.00
* After 16:30 hours: ₹10.00
Customer Charges:
* Customers should not be charged for inward transactions.
* Maximum charges for outward transactions (exclusive of service tax):
* ₹2 lakh to ₹5 lakh: ₹25 + applicable time varying charge (maximum ₹30).
* Above ₹5 lakh: ₹50 + applicable time varying charge (maximum ₹55).
Billing and Reporting:
* RBI will calculate service charges monthly and debit the amount from the member's current account with RBI Mumbai.
* Reports on service charges collected will be available from the Deposit Accounts Department, RBI Mumbai.
Effective Date and Review:
* Revised service charges are effective from April 1, 2016.
* The charges are subject to periodic review by the Reserve Bank.
Impact Analysis:
RTGS Members (Scheduled Commercial Banks, Other Banks, Primary Dealers, Clearing Entities, Special Entities):
* Impact: Increased monthly membership fees and new time-varying processing charges for outward RTGS transactions.
* Action Required: Update systems to reflect the new fee structure, ensure compliance, and communicate changes to customers.
Customers:
* Impact: Potential changes in outward transaction fees charged by member banks, but no charges for inward transactions.
* Action Required: Be aware of the revised fee structure for outward RTGS transactions.
Reserve Bank of India (RBI):
* Impact: Increased revenue from RTGS transactions and responsibility for monitoring and enforcing the new fee structure.
* Action Required: Implement the new fee structure, monitor its impact, and provide reports to members.
Key Entities Referenced
Nanda S. Dave: Chief General Manager at Reserve Bank of India, the signatory of the circular.
Reserve Bank of India: The central bank of India, responsible for regulating the banking system and monetary policy.
RTGS: Real Time Gross Settlement; a system for transferring funds electronically in real time.
Payment and Settlement Systems Act 2007: The Indian legislation governing payment and settlement systems in India.
Scheduled Commercial Banks: Banks in India that are listed in the Second Schedule to the Reserve Bank of India Act, 1934.
Primary Dealers: Entities authorized to deal in government securities.
Deposit Accounts Department, Reserve Bank of India, Mumbai: A department within the Reserve Bank of India located in Mumbai responsible for maintaining current accounts of member banks.
Mumbai, Maharashtra: The financial capital of India, and location of the Deposit Accounts Department of RBI.
भारतीय�रज़वबर् क�
RESERVE BANK OF INDIA
www.rbi.org.in
RBI/2015-16/306
DPSS (CO) RTGS No.1926 /04.04.002/2015-16 February 4, 2016
The Chairman / Managing Director /
Chief Executive Officer of participants of RTGS
Madam / Sir,
RTGS service charges for members and customers - Rationalisation
A reference is invited to our circular DPSS.(CO).RTGS.No.388/04.04.002/2011-2012 dated
September 5, 2011.
2. As participants in the RTGS are aware, the RBI introduced service charges on members for all
outward RTGS transactions with effect from October 1, 2011. Since then RBI has upgraded the
RTGS system adding more capacity and features. With the enhancements, the time window of
operation has also increased, adding to operational efficiency, though with a higher cost. To
ensure that such services are adequately priced, RBI has revised the fee structure for members
and rationalised the charges levied on them. Inward transactions of the members will not attract
any service charges and will continue to be free, as hitherto.
3. The RTGS service charges would consist of monthly membership fee and processing charges
per transaction, as follows:
(i) Monthly Membership Fee: The membership fee has been marginally enhanced and the new
structure will be as follows:
Monthly Membership Fee
Type of Entities
(exclusive of service tax)
Scheduled Commercial Banks (SCB) ` 5,000
Banks other than SCBs, Primary Dealers,
` 2,500
clearing entities, other special entities, etc.
(ii) Processing charge per transaction: Every outward transaction will attract flat processing
charge at the earlier cap of `0.50 (exclusive of service tax) and a time varying charge as under:Time of Settlement at the Time varying charge per outward transaction
Sr. no. Reserve Bank of India (in addition to flat processing charge)
From To (exclusive of service tax)
1 08:00 hours 11:00 hours Nil
2 After 11:00 hours 13:00 hours ` 2.00
3 After 13:00 hours 16:30 hours ` 5.00
4 After 16:30 hours ` 10.00
4. As there is no change in the minimum or maximum time varying charge, the maximum
charges that can be recovered by a member (if it so desires) from its customers will remain
unchanged as under:
RTGS Transaction Maximum Customer Charges (exclusive of service tax)
Inward transactions Free
Outward transactions
` 2 lakh to ` 5 lakh ` 25 + applicable time varying charge, subject to a maximum of ` 30/-.
Above ` 5 lakh ` 50 + applicable time varying charge, subject to a maximum of ` 55/-.
5. Members may please note that customers should not be charged for inward transaction, as
hitherto.
6. RBI will calculate service charges on a monthly basis for each member and the amount will be
debited from the current account of the respective member maintained with Deposit Accounts
Department, Reserve Bank of India, Mumbai at the end of the month. The necessary reports on
service charges collected from each member would be made available by the Deposit Accounts
Department, Reserve Bank of India, Mumbai.
7. The revised service charges for RTGS members will come into effect from April 1, 2016. The
aforesaid charges will be subject to periodic review by the Reserve Bank.
8. This directive is issued under Section 10(2) read with Section 18 of Payment and Settlement
Systems Act 2007 (Act 51 of 2007).
Yours faithfully,
(Nanda S. Dave)
Chief General Manager