The State bank of India, India’s largest bank, announced today that it will waive off IMPS, NEFT and RTGS charges. The charges that have been waived off are for YONO, INB and MB customers from July 1, 2019. The waiver for IMPS charges for YONO, INB and MB customers will come into effect from August 1st, 2019. Waiver on IMPS charges of fund transfer up to Rs 1,000 through branch banking. The SBI has also reduced the NEFT and RTGS charges through branch banking by 20%.
Earlier, in order to provide an impetus to digital funds movement, Reserve Bank of India (RBI) had directed banks to withdraw charges levied on National Electronic Funds Transfer (NEFT) and Real-time gross settlement (RTGS) with effect from July 1.
According to a notification issued by the RBI, it has decided that with effect from July 1, 2019, processing charges and time-varying charges levied on banks by the top bank for outward transactions undertaken using the RTGS system, as also the processing charges levied by RBI for transactions processed in NEFT system will be waived by the Reserve Bank.
"The banks are advised to pass on the benefits to their customers for undertaking transactions using the RTGS and NEFT systems with effect from July 1, 2019, the notification reads.
Previously, the RBI said it has done away with charges on fund transfers through RTGS and NEFT routes to boost digital transactions and asked banks to pass on the benefits to customers.
The NEFT and RTGS System is used for fund transfers up to Rs 2 lakh.
Both are popular financial transaction systems. Currently, banks charge between Rs 30-55 on RTGS and Rs 2-25 on NEFT fund transfer.
Country's largest bank SBI charges between Re 1 and Rs 5 for transactions through NEFT and between Rs 5 and Rs 50 for RTGS route.
"In the area of payment and settlement systems, it has been decided to do away with the charges levied by the Reserve Bank for transactions processed in the RTGS and NEFT systems in order to provide an impetus to digital funds movement," RBI Governor Shaktikanta Das had said announcing the plan on the sidelines of the second monetary policy decision.
Meanwhile, the RBI has decided to set up a committee to review the charges levied on the use to ATMs as the usage by the public has been growing significantly.