SBI: Major setback for SBI customers. The country’s largest public sector bank, State Bank of India (SBI), is now changing its online transaction rules for its customers. The bank has announced that it will soon impose a service charge on online transactions conducted through IMPS (Immediate Payment Service). This charge will only apply to transactions exceeding Rs 25,000.
What is the new rule?
Until now, SBI didn’t charge any additional fees for online money transfers using IMPS. However, under the new rules, customers transferring funds above Rs 25,000 will be subject to a service charge, which will be determined based on the transaction amount.
How much will the charge be?
– Rs 10 + GST on transactions between Rs 25,000 and Rs 1 lakh
– Rs 20 + GST on transactions between Rs 1 lakh and Rs 2 lakh
– Rs 25 + GST on transactions between Rs 2 lakh and Rs 5 lakh
Thus, the larger the amount transferred, the higher the charges.
Major Impact on customers
Millions of SBI customers use IMPS daily. This change is especially important for small businesses and individuals who need instant money transfers. However, the bank maintains that this charge is nominal and will not significantly burden customers.
Why was the charge imposed?
Banking experts believe that SBI has taken this step keeping in mind the rising cost of digital transactions. IMPS is a real-time payment system, in which the bank has to bear technical and networking expenses. The new charges will help the bank in managing these expenses. SBI’s 50 crore+ customers use IMPS daily. The load was increasing due to the free service. Now the cost will be recovered by charging on big transactions. Other banks (HDFC, ICICI) are also on the same formula. Under RBI guidelines, IMPS charges are optional. Customers can choose NEFT/RTGS or UPI (free). This step of SBI is in the direction of making digital banking regulated.
Options for customers
If customers wish to avoid charges, they can use NEFT (National Electronic Funds Transfer) or RTGS (Real Time Gross Settlement). Currently, there are no additional fees for these services. Furthermore, UPI transactions are also free, making them the most convenient option for small and medium-sized transfers.