A day after it waived charges on Immediate Payment System (IMPS) transactions of up to Rs1,000, State Bank of India (SBI) on Thursday lowered transaction charges on transfers made through the National Electronic Funds Transfer (NEFT) and Real Time Gross Settlement (RTGS) channels.
NEFT transactions of up to Rs10,000 will now attract a charge of Rs1, transactions between Rs1,001 and Rs1 lakh will be charged at Rs2, those between Rs1 lakh and Rs2 lakh will be charged Rs3, while transactions involving higher amounts will be charged Rs5. Earlier, these charges were Rs2, Rs4, Rs12 and Rs20, respectively.
RTGS transactions of between Rs2 lakh and Rs5 lakh will now be charged Rs5, as against Rs20 earlier, and those involving higher amounts will be charged Rs10, down from Rs40 earlier.
The new charges, which are exclusive of the Goods and Services Tax (GST), will come into effect on Saturday. They will be applicable only to transfers made through internet or mobile banking.
The reset in transaction charges, ostensibly aimed at pushing digital transactions, puts SBI at something of a disadvantage to its peers in the private sector. Both ICICI Bankand HDFC Bank, SBI’s closest competitors in terms of digital transaction volumes, already earn more from each NEFT and RTGS transaction than SBI does.
Both of them charge Rs2.50 for NEFT transactions of up to Rs10,000, Rs5 for transactions between Rs10,001 and Rs1 lakh, Rs15 for transactions between Rs1 lakh and Rs2 lakh and Rs25 for transfers of higher amounts.