State Bank of India has recently announced its withdrawal of immediate payment service transactions on internet banking and mobile banking service that will be effective from 1st August 2019.
IMPS is a robust and real-time fund transfer service that offers an instant round the clock interbank electronic fund transfer facility which is accessible on multiple channels such as Internet mobile, SMS, ATM, branch and USSD (*99#). IMPS funds transfer instantly within banks across the nation. While it is going to offer IMPS free of charge on MBS/INB, the largest bank of India has applied the same for IMPS transactions at the branches. The first two IMPS slab charges at branches are going to remain unchanged, i.e., for up to INR 1,000 slab, the charge is Nil while the charge for INR 1001 up to INR 10,000 slab the charge will be INR 2 + GST.
More information for customers
The charges have been revised for the remaining three slabs. On the INR 10, 001 up to INR 25, 000 slabs, the charge is revised to INR 4 + GST for the INR 25, 001 to INR 1 lakh slab, the charge has been revised to INR 4 + GST and for the slab of INR 1, 00, 001 up to INR 2 lakh slab the charges are now revised to INR 12 + GST. The national payments Corporation of India or the NPCI through the existing National Financial System (NFS) switch provides the IMPS facility.
At the end of March 2019, the share of transactions made through alternate channels such as internet and mobile banking, POS and e-commerce, ATM and UPI and YONO was 88.1 percent for SBI as compared to 84.1 percent in March end of 2018.
Within the objective to move towards a cashless economy, the Reserve Bank of India took the first step to waive the charges on NEFT and RTGS transactions through the internet and mobile banking from 1st July followed by State Bank of India. The real-time gross settlement system caters to a large value instantaneous transfer of fund while the National electronic funds’ transfer can be utilized for transfer of funds up to 2 lakh. The State Bank of India waived off the RTGS and NEFT charges to provide an impetus to the movement of digital funds from July 1st, 2019. Before 1st July the State Bank of India charged INR 1 to INR 5 for the transactions made through NEFT and about INR 5 to INR 50 for the RTGS route.
What else should you know?
The State Bank of India customers using internet banking at the end of March 2019 was about 6 crores and about 1.41 crore customers were using mobile banking services. State Bank of India plans to have about 18 % share in the mobile banking transaction market the users registered for YONO (You Only Need One) which is the integrated digital and lifestyle platform was about 1 crore. State Bank of India has taken the step to synchronize with the strategy and vision of the Government of India for creating a digital economy. The State Bank of India aims to promote more usage of internet banking, YONO and mobile banking for making RTGS and NEFT transactions without any cost.
The State Bank of India is one of the largest commercial banks in terms of deposits, assets, customers, branches, and employees. It is also the largest mortgage lender in India. The State Bank of India has 22010 branches making it the largest banking network in the country and about 58000 ATM/ Cash Deposit Machine network in India.
After Reserve Bank of India announced its decision to waive off all the charges on fund transfer through NEFT and RTGS systems from 1st July 2019, it asked the other banks to provide the same benefit to their customers from the very same day.