SBI Waives Off IMPS, NEFT, RTGS Charges For Online Fund Transfer

SBI (State Bank of India), the country’s largest commercial bank has waived charges on NEFT (National Electronic Funds Transfer) and RTGS (Real-Time Gross Settlement) transactions for its internet banking, mobile banking and YONO (You Only Need One) customers, from July 1. The bank has 25% share market will waive-off IMPS charges as well with effect from August 1.

The bank has already reduced NEFT and RTGS charges by 20 per cent across all slabs for customers transacting through the branch network. Alternatively, there will be a waiver for up to Rs 1000 on IMPS charges through branch banking.

Meanwhile, SBI has reduced its MCLR by 5 basis points across all tenors. With one-year MCLR stands from 8.45% p.a to 8.40% p.a.

This came into the picture when the RBI (Reserve Bank of India) decided to do away with the charges with an aim to promote digital transactions and move the country towards a less-cash economy.

IMPS, NEFT, RTGS

• IMPS is an instant payment service that enables round-the-clock money transfer through the use of, mobile banking, mobile app or internet banking. There is no minimum limit.
• NEFT (National Electronic Funds Transfer) system is used for fund transactions of up to Rs 2 lakh.
• RTGS (Real-time gross settlement) system is meant for large-value instantaneous fund transfers.

Before 1 July

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As per reports by PTI, at March-end, 2019,

• More than six crores SBI customers are using internet banking.
• While 1.41 crore SBI customers were using mobile banking services.
• The commercial bank claims to have around 18 per cent market share with respect to mobile banking transactions.
• There are one crore registered users of YONO (You Only Need One), its integrated digital and lifestyle platform.

The waiver in IMPS, NEFT and RTGS charges will attract more customers towards digital transactions along with customer convenience, the bank said, to give impetus to the Digital India 2.0.

According to the bank’s MD (Retail & Digital Banking) PK Gupta, This step has been taken in order to sync with their strategy and Government of India’s vision to create a digital India. This waiver will promote the use of, internet banking, YONO and mobile banking for doing NEFT and RTGS transactions without incurring any cost.

The following table shows the current charges for IMPS using SBI Yono Lite: