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P.K. Gupta, MD (Retail & Digital Banking), SBI

In a bid to boost its digital transactions, India’s largest lender State Bank of India (SBI) has waived off RTGS and NEFT charges for its digital platform YONO, internet banking (INB) and mobile banking (MB) customers from July 1, 2019.

The bank has decided to waive-off IMPS charges for its INB, MB and YONO customers effective from August 1, 2019. Immediate Payment Services (IMPS), National Electronic Fund Transfer (NEFT) and Real-time Gross Settlement (RTGS) are various fund transfer systems maintained by the Reserve Bank of India and were chargeable earlier.

P.K. Gupta, MD (Retail & Digital Banking), SBI said in a statement that, “One of our bank’s core strategies is to provide convenience to customers and encourage them to take the digital route for transferring funds. In sync with our strategy and Government’s vision to create a digital economy, SBI has taken this step to promote use of YONO, internet banking and mobile banking for doing NEFT and RTGS transactions without incurring any cost.”

As on 31st March 2019, the number of SBI customers using internet banking are more than 6 crore and mobile banking services stands at 1.41 crore.

The public sector bank, in a statement, said that it has around 18% market share in mobile banking transactions. Registered users of YONO stands at nearly one crore and that the waiver in NEFT, IMPS and RTGS charges will attract more customers towards digital transactions.

The move by the public sector lender comes a month following banking regulator Reserve Bank of India’s decision to not impose any charges on the above-mentioned transactions.

RTGS system is meant for large-value fund transfers, while NEFT system is used for fund transfers of up to INR 2 lakh.

SBI used to charge between INR 1 and INR 5 for transactions through NEFT and between INR 5 and INR 50 for RTGS route. Earlier in the year, the bank had reduced NEFT and RTGS charges for customers transacting through branch network by 20% across all slabs.

 

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by Priyanka Pani
Senior Regional Correspondent, Middle East and Asia
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