India’s largest public lender the State Bank of India has announced that it has waived charges on fund transfer through mobile phones using the IMPS (immediate payment service) and will be made effective from August 1.
“In order to provide an impetus to digital funds movement, SBI waived-off RTGS and NEFT charges for YONO( You Only Need One), internet banking (INB) and mobile banking (MB) customers from July 1, 2019. The bank will also waive-off IMPS charges for its INB, MB, and YONO customers effective from August 1, 2019,” the state-owned lender said in a statement.
The Reserve Bank of India (RBI) had ordered all banks to abolish its charges on National Electronic Funds Transfer (NEFT) and Real Time Gross Settlement System (RTGS) online money transfer which was made effective from July 1.
Earlier, SBI used to charge between Re 1 and Rs 5 for transactions through NEFT, and Rs 5-50 for RTGS route.
In order to provide momentum to the digital funds’ movement, the central bank had further decided that from July 1, the processing charges and time-varying charges levied on banks by RBI for outward transactions through the RTGS, also the processing charges for transactions processed in NEFT will be waived.
The central bank had earlier extended the RTGS time window meant for customer transactions (initial cut-off) from 4.30 pm to 6 pm.