RTN Charge Kya Hota Hai : Full Details

RTN charges. RTN stands for Return, and these charges are applied by banks when certain transactions cannot be completed successfully. This guide will help you understand what RTN charges are, why they occur, and what you can do about them.

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What are RTN Charges?

RTN charges, or return charges, are fees levied by banks when a transaction cannot be processed and the money is sent back to the sender’s account. This can happen for several reasons, and understanding these reasons can help you avoid these charges in the future.

Reasons for RTN Charges

RTN charges can be applied for various reasons, including:

Insufficient Funds: If there isn’t enough money in your account to complete a transaction, the bank will return the transaction and charge a fee.
Incorrect Account Information: If the account number or details you provided are incorrect, the transaction cannot be completed.
Closed or Inactive Account: If the recipient’s account is closed or inactive, the transaction will be returned.
Account Restrictions: Sometimes, banks have restrictions on certain transactions, which can cause a return if the requirements are not met.
Technical Issues: Occasionally, technical problems within the banking system can cause transactions to be returned.

RTN Charges in the Bank of India

For example, the Bank of India may charge ₹295 as an RTN fee. Many people have reported that even after clearing their loans, they still see ₹295 being deducted from their accounts. This guide aims to help you understand why this happens and what you can do about it.

Common Scenarios Leading to RTN Charges

Let’s look at a few common scenarios where RTN charges might be applied:

Loan EMIs: Even after you have cleared your loan, if there was a return of an installment (EMI) at any point due to insufficient funds or any other reason, the bank may apply RTN charges.
Multiple RTN Fees: Sometimes, multiple RTN charges can be applied in a single day if there are repeated attempts to process a transaction that fails due to the same issue.

Real-life Example

Consider the case of Mr. Vishnu Sharma, who experienced repeated deductions of ₹295 from his account, even after clearing his loan. Mr. Sharma’s case helps illustrate how these charges work and why they might continue even after a loan is cleared.

Detailed Breakdown of Mr. Sharma’s Case

Initial Loan Payment Issues: Mr. Sharma had a loan with an EMI payment scheduled for 8th June 2013. Due to insufficient funds, the payment was not completed, and an RTN charge was applied.
Cleared Loan: Despite clearing his loan later, the initial RTN charge remained pending.
Subsequent Deductions: Whenever there was enough balance in his account, the pending RTN charge would be deducted automatically.

How to Avoid RTN Charges

Here are some tips to help you avoid RTN charges:

Maintain Sufficient Balance: Ensure you have enough money in your account to cover any scheduled transactions.
Double-Check Account Details: Always verify that the account information you provide is correct.
Monitor Your Account Regularly: Keep an eye on your account transactions and balances to catch any issues early.
Communicate with Your Bank: If you notice any unexpected charges, contact your bank for clarification and to resolve the issue.

Frequently Asked Questions (FAQs)

What is the RTN fee?

The RTN fee is a charge applied by banks when a transaction is returned due to issues like insufficient funds, incorrect account information, or closed accounts.

What does RTN mean on a bank statement?

RTN on a bank statement indicates a returned transaction, meaning the money was not successfully transferred and has been sent back to the sender’s account.

What are EMI RTN charges?

EMI RTN charges are return fees applied when an Equated Monthly Installment (EMI) payment is returned due to issues such as insufficient funds.

What is the meaning of RTN CHG?

RTN CHG stands for Return Charge, a fee applied by banks for returned transactions.

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