HDFC Bank- are NEFT Charges jsutified

HDFC bank recently introduced new charges called NEFT charges. Are they justified???

Does RBI and HDFC bank wants citizens to go back to the era of issuing of cheques, which was free of cost. It was more labor intensive and more costly to the banking system than NEFT.RBI should advise banks not to levy NEFT charges,as otherwise everyone will start issuing cheques again.. There will be wastage of paper, time and increase in cost to banking system Issuing cheques involves increase in cost to banks in terms of cheque books, paper payin slips, increase in backend operations volume for bank (clearing desk) BUT still HDFC bank wants to levy NEFT charges .

Is Indian banking system trying to move foward or backwards by discouraging bank customers to use Inetrnet Banking for NEFT transfers

On HDFC Bank website
Important Message :
Effective 16th January, 2010, NEFT transactions on NetBanking would be charged as below:
Upto Rs. 1 lac. - Rs. 5 (inclusive of taxes) per transaction .
Rs. 1 lac and above - Rs. 25 (inclusive of taxes) per transaction.
Upto Rs. 1 lac. - Rs. 5 (inclusive of taxes) per transaction .Rs. 1 lac and above - Rs. 25 (inclusive of taxes) per transaction.
Effective 16th January, 2010, RTGS transactions on NetBanking would be charged at Rs. 25 (inclusive of taxes) per transaction.

RBI website - http://www.rbi.org.in/scripts/FAQView.aspx?Id=60
Q.12. What are the processing or service charges for NEFT transactions?Ans : Reserve Bank of India has waived the processing or service charges for member banks till March 31, 2010. Accordingly, member banks participating in NEFT need not pay any processing or service charges to Reserve Bank of India. Further, processing or service charges to be levied by the member banks from their customers have also been rationalised by Reserve Bank of India as under: –

a) Inward transactions at destination bank branches (for credit to beneficiary accounts)
– Free, no charges to be levied from beneficiaries

b) Outward transactions at originating bank branches (charges for the remitter) – For transactions up to Rs. 1 lakh – Charges not exceeding Rs. 5. – For transactions of Rs. 1 lakh and above – Charges not exceeding Rs. 25.