In a move to boost digital transactions, State Bank of India has decided to do away with charges for IMPS transactions from August 1.
This means customers who use YONO, internet banking (INB) and mobile banking (MB) for funds transfer, won't have to pay extra charges.
SBI made this announcement weeks after RBI had asked banks to waive off RTGS and NEFT charges.
First, let's understand what is IMPS
IMPS, which stands for Immediate Payment Service, was launched on November 22, 2010, by National Payments Corporation of India.
Through this facility, a bank account holder can instantly transfer money to other accounts of the same bank or any other bank.
What makes IMPS a hit among customers is the fact that is works 24*7 even on bank holidays.
So, how much does SBI charge for IMPS?
As of now, SBI doesn't charge anything for IMPS transaction up to Rs. 1,000.
The bank charges Rs. 1 for transactions between Rs. 1,001 and Rs. 10,000. Notably, the commission amount debited from customers for this slab is Rs. 2.36, as it includes GST.
Similarly, for Rs. 10,001-1 lakh, SBI charges Rs. 2, but commission amount which customers pay is Rs. 5.90.
Do you know?
Naturally, SBI charged more for heavy transactions
SBI charges Rs. 3 for transactions falling in the slab of Rs. 1 lakh-2 lakh. The commission amount debited from the customer is Rs. 11.80.
SBI is following Centre's vision of creating digital economy: Official
Waiving off IMPS charges isn't only major change which SBI brought in recently.
From July 1, the bank did away with RTGS and NEFT charges. SBI also reduced NEFT and RTGS charges for customers transacting through the branch network by 20% across all slabs.
PK Gupta, SBI's MD, Retail & Digital Banking, said this move follows the Centre's vision of creating a digital economy.
Do you know?
Notably, more than 6 crore SBI customers use online banking
Till March 31, 2019, more than 6 crore SBI customers used internet banking and nearly 1.41 crore used its mobile banking services. Moreover, YONO, SBI's integrated digital and lifestyle platform, has approximately 1 crore users.