State Bank of India – The first to waive-off NEFT, IMPS and RTGS charges from fund transfer
State bank of India, an Indian multinational public sector banking and financial services statutory body, waives-off charges on RTGS and NEFT for internet banking, YONO and mobile banking to provide an impetus to digital funds. NEFT and RTGS transactions that use the internet and mobile banking will be free from the banking charges effective July 1, 2019, onwards. The charges on IMPS transactions through mobile phones are to be waived-off effective from August 1, 2019.
The services on which no charges will be applicable:
- NEFT (National Electronic Fund Transfer)
- RTGS (Real Time Gross Settlement)
- IMPS (Immediate Payment Service)
The RTGS system is meant to transfer those funds quickly that have big valuation while NEFT system is used to transfer the amount of up to ₹ 2 lakh.
The decision of waiving-off the charges on these services came into light after the Reserve Bank of India decided to do away with such charges with an aim to move our Nation towards a less-cash economy. SBI is India’s largest bank.
SBI holds more than 25% of the market share. In a statement given by the state-owned lender, it is reported that the bank will waive off the IMPS charges for its mobile banking (MB), internet banking (IB) and YONO customers. The same is effective from August 1, 2019.
State Bank of India has the largest network of banks with approx. 22010 branches in all over India. Further, the bank has more than 58000 ATM’s/CDM’s in the country.
The bank used to charge ₹ 1 to ₹ 5 for the transactions done through NEFT, and between ₹ 5 to ₹ 50 for RTGS services before July 1, 2019. The bank has more than 18% market share in mobile transactions.
As per the bank, the number of customers using Internet banking and mobile banking was 6 crores and 1.40 crores respectively, by the end of March 2019. The number of registered users of YONO (You only need one), the online banking app of SBI, are about 1 crore.
The bank has taken this step to facilitate the cashless system whereby to attract more and more customers towards the digital transactions. Additionally, the bank has already reduced NEFT and RTGS charges for customers transacting through the branch network by 20% across all slabs.
Finance Minister, Nirmala Sitharaman also announced steps to promote digital transactions, in the Union Budget. Reserve bank of India had asked all the banks to pass on the benefits to the customers from the same day post announcing its decision to waive-off all these charges of Fund transfer.