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The govt should simplify inter and intra-bank money transfers to pave the way for cashless economy
There should be uniform charges/commissions for inter or intra-bank money transfers through RTGS/NEFT/IMPS for all private and government banks as fixed by the Reserve Bank of India from time to time.

There should be no commission/service charge on depositing cash at home branches and non-home branches.

The customers should be allowed to deposit cash into their bank accounts from any bank branch anywhere in India without any commission/services charge on the deposited amount.

There should be uniform service charge on encashment of cheques at non-home branches of all private and government banks as fixed by the RBI.

The Reserve Bank of India should regulate and fix uniform service charge/commission for all online money transfers and encashment of cheques/Demand Drafts for all private and government banks.

The service charge should not vary from bank to bank.

The online money transfer process for customers at bank branches should be simplified and made easy.

In the present system, the customer is finding it very difficult to make an inter-bank money transfer at a bank branch. For this, he or she has to fill two forms, a withdrawal form and also a money transfer form.

For the withdrawal form, one has to calculate the amount to be transferred and also the commission to be paid for the money transfer. For example, if the customer has to transfer 10,000 from his or her bank account to another account in another bank or branch, one has to write down in the form the total amount 10,000 + 2.87 = 10,002.87 figures and words like – ten thousand and two rupees and eighty seven paise. For the amount 1,00,000 to be transferred, he/she must write down like this – 1,00,005.75 in figures, one lakh and five rupees and seventy five paise only. One should be a genius in mathematics to write down these figures. [Note – The commission figure includes the 14% service tax as on 2-5-2017. This may vary from bank to bank.]

To make online payments easy, I suggest the following steps:

1. Do away with the need for withdrawal form for online money transfers.

2. Filling of money transfer form should be enough for online transfers.

3. Only the amount to be transferred should be required to be written in words and figures without bothering about the commission charges.

4. The commission charges for the amount to be transferred should be deducted automatically from the transferer's bank account upon the transfer of amount.

5. All the commission charges including service tax, if any, should be in whole numbers denoting rupees and ignoring the paise value.

6. The service charge/commission should be rounded off to nearest rupee value ignoring the paise value.

7. Make all banking accounts transform into single monetary values ie integers denoting rupees while ignoring the decimal value for paise. Decimal values denoting paise should be removed from all accounts in the banking system.

8. Banking software should be recalibrated so that all bank accounts come into single unit monetary value with numerical system containing only integers denoting rupees by eliminating the decimal values for paise. The numerical value accrued in calculations should be automatically rounded off to the nearest integer rupee value. For example, the amounts of rupees 10.01 and rupees 10.49 should be rounded off to rupees 10 and from rupees 10.50 & 10.99, the values should be rounded off to rupees 11.

Two layer monetary system was introduced long time back when a paisa had some significant value. But now, the value of a paisa has reached its nadir, and a 25 paise coin has seized to be a legal tender from 2011. So, it to not prudent to continue with the paise system in accounting and it is better to remove paise from the currency system as well and continue with the rupee only.

The present NEFT/RTGS/ECS charges as on 2-5-2017. These charges may vary from bank to bank.



Including service tax

My suggested charges





10,000 – 100,000




100,000 – 200,000




Above 200,000




Editorial NOTE: This article is categorized under Opinion Section. The views expressed in this article are solely those of the author and do not necessarily represent the views of In case you have a opposing view, please click here to share the same in the comments section.
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