SBI To Remove Immediate Payment Service (IMPS) Charges From August 1: Ten Things To Know

SBI To Remove Immediate Payment Service (IMPS) Charges From August 1: Ten Things To Know

State Bank of India or SBI, the largest commercial bank in the country, has decided to do away with IMPS (Immediate Payment Service) charges for its internet banking, mobile banking and YONO (You Only Need One) customers. The IMPS charge will be nil for such customers, with effect from August 1, SBI said in a statement. For bank branches, SBI has announced a waiver on IMPS charges for fund transfer up to Rs. 1,000. IMPS is an instant payment service that enables round-the-clock money transfer through the use of mobile app, mobile banking or internet banking.

Here are 10 things to know about SBI’s announcements:

  1. Along with customer convenience, the waiver in NEFT (National Electronic Funds Transfer ), IMPS and RTGS (real-time gross settlement) charges will attract more customers towards digital transactions, the bank said.
  2. SBI has already waived charges on NEFT (National Electronic Funds Transfer ) and RTGS (real-time gross settlement) transactions through internet and mobile banking from July 1.
  3. Additionally, the bank also reduced NEFT and RTGS charges for customers transacting through branch network by 20 per cent across all slabs.
  4. The National Electronic Funds Transfer (NEFT) system is used for fund transactions of up to Rs. 2 lakh, while the real-time gross settlement (RTGS) system is meant for large-value instantaneous fund transfers.
  5. “In order to provide an impetus to digital funds movement, SBI waived-off RTGS and NEFT charges for YONO, internet banking (INB) and mobile banking (MB) customers from July 1, 2019,” the bank said.
  6. Before July 1, SBI used to charge between Re 1 and Rs. 5 for transactions through NEFT, and Rs. 5-50 for RTGS route.
  7. These announcements by SBI came after Reserve Bank of India (RBI) decided to do away with the charges with an aim to move the country towards less-cash economy.
  8. Last month, the central bank waived-off the processing charges and time-varying charges on outward transaction of NEFT and RTGS which was levied on the banks.
  9. Meanwhile, SBI reduced its benchmark lending rates by five basis points across all tenors. The marginal cost of fund-based lending rate, or the MCLR, now stands at 8.40 per cent for the one-year tenor, down from 8.45 per cent, with effect from July 10.
  10. As on March 31, 2019, the number of SBI customers using internet banking are more than 6 crores and mobile banking services stands at 1.41 crore.