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State Bank of India slashes charges for transferring funds by up to 75% to lift digital economy

The decline in charges will be effective from July 15, 2017 and will be applicable on money transactions through internet banking and mobile banking services.

BT Online | March 6, 2018 | Updated 10:35 IST
State Bank of India slashes charges for transferring funds by up to 75% to lift digital economy

In a big cheer to digital economy, State Bank of India has reduced online money transaction charges again in two days . The biggest commercial bank of the country reduced charges levied on Real-time Gross Settlement (RTGS) and National Electronic Fund Transfer (NEFT) transactions up to 75 per cent today.

The decline in charges will be effective from July 15, 2017 and will be applicable on money transactions through internet banking and mobile banking services. NEFT and RTGS are electronic money transaction mechanisms used to transfer money between two different bank accounts anywhere in the country.

"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. In sync with our strategy and complementing the focus of the Government of India to create a digital economy, we have taken one more step to promote use of internet banking and mobile banking for doing NEFT and RTGS transactions by reduction of the charges," said Rajnish Kumar, Managing Director (NBG), SBI in a statement.

"We are committed towards increasing the share of digital initiatives in products, services and transactions, supported by technologically advanced backend operations," he added.

In case of NEFT transactions now, SBI used to charge Rs 2 for transferring a sum of Rs 10,000 through internet banking or mobile banking. This fee has now been halved to Rs 1 for both mediums.

For transferring anywhere between Rs Rs 10,001 to Rs one lakh through NEFT, SBI customers had to pay Rs 4 which again has been halved to Rs 2. For transferring higher amounts above one lakh rupees and up to Rs two lakhs through NEFT, SBI clients will have to pay only Rs 3 where, they were once paying Rs 12.

For transferring amounts higher than two lakh rupees through NEFT, SBI will charge only Rs 5 after a 75 per cent decline from earlier charge which were to the tune of Rs 20.

In case of RTGS, SBI customers will have to pay Rs 5 for transferring amounts between Rs 2 lakh to Rs 5 lakh. The bank charged Rs 20 for the same transaction earlier. Customers transferring amounts above Rs 5 lakh through RTGS will have to pay Rs 10, as opposed to Rs 40 that they were paying before.

All of these charges have been exclusive of Goods and Services Tax (GST) which mandates 18 per cent tax rate on financial services.

On Wednesday, SBI has waived charges for fund transfer of up to Rs 1,000 through its Immediate Payment Service (IMPS) to promote small transactions.

State Bank of India had been charging Rs 5 along with the applicable service tax for IMPS fund transfer of up to Rs 1,000.

IMPS is an instant interbank electronic fund transfer service through mobile phones as well as internet banking.

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