The reduced charges will make transactions done through bank's internet banking and mobile banking cheaper
In a bid to push digital transactions, State Bank of India (SBI) on Thursday reduced the National Electronic Funds Transfer (NEFT) and Real Time Gross Settlement (RTGS) charges up to 75%, effective from July 15. The reduced charges will make transactions done through bank's internet banking and mobile banking cheaper.
NEFT charges for money transfer up to Rs 10,000 will be Re 1 for every transaction, down from the existing rate of Rs 2. For money transfers between Rs 10,000 to Rs 1 lakh, the new charge will be Rs 2 down from Rs 4. The money transfers above Rs 2 lakh will be Rs 1 lower than the existing rate of Rs 20.
The RTGS charges for money transfers of Rs 2 to Rs 5 lakh will cost Rs 5, down from Rs 20, and for money transfers above Rs 5 lakh, the cost will be Rs 10 down from Rs 40.
The bank had on Wednesday waived charges for fund transfer of up to Rs 1,000 through IMPS (Immediate Payment Service) to promote small transactions.
Rajnish Kumar, managing director- National Banking Group (NBG), SBI, said, "In sync with our strategy and complementing the focus of 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."
SBI Ecowrap, the bank's research unit, said, "If demonetization had not happened, it would have taken three years more for credit and debit cards transactions on point of sales (PoS) terminals to reach the current level of Rs 70,000 crore (assuming a yearly growth rate of 25%). We believe that increasing number of PoS terminals (post demonetization, banks have been able to set-up 11.8 lakh extra PoS terminals) and ease of doing digital transaction will increase this level further. Similar trends are observed in the case of usage of pre-paid instruments (include m-wallet, PPI cards and paper vouchers) and mobile banking, too. PPI witnessed a sharp growth with transactions value worth Rs 10700 crore in May 2017 compared with Rs 5,100 crore in November 2016.
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