India’s largest public sector bank State Bank of India has removed all the charges associated with IMPS transactions. Earlier the bank removed NEFT and RTGS charges as well followed by removal of IMPS charges now. SBI users can now transfer money without paying any additional charges.
However, if a user brings in physical cash to any branch of SBI and opts for IMPS transaction, there will be a charge. The free transaction is only for full cashless mode.
After RBI removed the NEFT and RTGS transaction charges, most of the banks removed the NEFT and RTGS associated charges, but IMPS was still being charged by all banks. By making Immediate Payment Service (IMPS) free, the public bank has set an example which may be followed by other public and private sector banks soon.
While NEFT and RTGS run in batches and can take up to 4 hours to get the money transferred, IMPS is instant and takes less than 5 minutes. NEFT and RTGS are not available on public holidays and Sundays. On the other hand, IMPS is available 24X7.
Here are the details of the charges for carrying out IMPS via bank branch:
- ₹0 for transaction till ₹1000
- ₹2 plus GST for ₹1001 to Rs 10,000
- ₹4 plus GST for ₹10,001 to ₹25,000 (Up from ₹2 + GST now)
- ₹4 plus GST for ₹25,001 to ₹1,00,000 (Down from ₹5 + GST now)
- ₹12 plus GST for ₹1,00,001 to ₹2,00,000 (Up from ₹10 + GST now)
The transactions via mobile, ATM and internet banking have increased to 88.1% compared to 84.1% last year. In this case, the initiative by SBI is a smart move to further push the digital mode of transaction.