The Finance Ministry, to encourage digital transactions, has asked the PSU banks to limit fees on payments through IMPS and UPI to the extent which is applicable for NEFT fund transfer of over Rs 1,000.

According to RBI norms, NEFT transfer of up to Rs 10,000 attract Rs 2.5 fee. From Rs 10,000-1 lakh the fee is Rs 5; on Rs 1-2 lakh it is Rs 15, and beyond Rs 2 lakh it is Rs 25.

The service tax has been charged in addition to this.

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