India’s largest bank, State Bank of India (SBI), on Thursday came up with a big news according to which it has reduced the National Electronic Funds Transfer (NEFT) and Real Time Gross Settlement (RTGS) charges by up to 75%, w.e.f 15 July.
This can be called is good move for promoting digital transactions. The revised charges will be applicable on all NEFT and RTGS transactions which will be done through Net banking or mobile banking by SBI, India’s largest lender said in a statement. NEFT and RTGS are well known electronic payment systems, by the means of which fund transfer can be done between any two accounts of different banks within India.
SBI used to charge Rs. 2 for fund transfers up to Rs. 10,000 via NEFT using SBI Internet Banking or mobile banking. Now that these charges have been reduced to Rs 1 (excl. 18 % GST). For all the NEFT transactions from Rs 10,000 to Rs 1 lakh, the charges have been reduced to Rs. 2 from Rs. 4. SBI has also revised its fees for all the fund transfers made between Rs 2 lakh to Rs 5 lakh via RTGS on Net Banking and Mobile Banking modes, to Rs 5. Earlier, this charge was Rs 20.
Rajnish Kumar, managing director (NBG) at SBI said “Digitalization and excellence in operations is one of our core strategies in providing convenience to customers. It has resulted in reducing turnaround time along with extended benefits to the customers.,”.
He also said, “In sync with our strategy and complementing the focus of Indian Government for creating a digital economy, we have taken one step ahead in order to promote the use of internet banking and mobile banking for NEFT and RTGS transactions by reducing the charges,”.
Additionally, SBI has also waived off the charges for fund transfer of upto Rs 1,000 which are done through Immediate Payment Service (IMPS) w.e.f. July 1, 2017, the statement added. IMPS is a fund transfer service which can be carried out via mobile phones or Net banking. The IMPS service helps to transfer funds to the beneficiary’s account as soon as fund transfer request is made via mobile banking or net banking.