Indian bank boosts digital banking enhancing the limit on IMPS transactions

By Puja Sharma

SBI enhances the limit on IMPS transactions from Rs. 2 lac up to Rs. 5 lac with nil charges on transactions through digital channels.

In an aim to encourage customers to adopt digital banking, SBI has not levied any Service Charges on IMPS transactions up to Rs. 5 lacs, done through Internet banking/Mobile Banking including YONO.

In the case of Branch Channels, there has been no change in the service charges for IMPS (immediate payment service) done through the Branch Channel in the existing slabs. However, a new slab for ₹ 2,00,000 to ₹ 5,00,000 has been added and the proposed service charge for this slab is ₹ 20 + GST w.e.f 01.02.2022. The service charges on IMPS are in line with the Service Charges on NEFT/RTGS transactions.

State Bank of India is the largest commercial bank in terms of assets, deposits, branches, customers, and employees. It is also the largest mortgage lender in the country which has so far fulfilled the home buying dreams of 30 lakh Indian families.

Accelerating the digital agenda, more than 27,000 new digital savings bank accounts were opened per day in the quarter ended September 2021. In terms of digital lending, the bank disbursed personal loans worth Rs. 43,000 Crore through the YONO mobile app till Q2 of FY22.

The number of customers using internet banking and mobile banking stands at 94.4 million and close to 21 million respectively. The integrated digital and lifestyle platform – YONO SBI, has around 44 million registered users, which witnesses 12 million logins per day.

Similarly, the Reserve Bank of India (RBI) has issued a framework allowing offline payments up to Rs 200 per transaction, subject to an overall limit of Rs 2,000.

“A great move by RBI, as it will empower regional rural markets, where internet connectivity is still erratic, to leapfrog into the digital payments race. Currently, many transactions are being conducted that do not require mobile connectivity to operate. However, they are closed-loop mechanisms and are restricted to a particular network,” Anand Kumar Bajaj, Founder, MD & CEO, PayNearby said.

This move will enable both merchants and end-consumers across the ecosystem to conduct digital transactions seamlessly, even in the absence of internet connectivity and smartphones through cards, tokens, or even via voice-enabled solutions.

The offline transactions will bring a majority of the customers without smartphones into the digitization fold. It will encourage higher volumes of digital transactions across hinterlands in the country, which will eventually bridge the digital divide between urban and rural markets,” he added.

IMPS Service Charges

NEFT Service Charges