State Bank of India (SBI) on Wednesday waived charges on all money transfers of less than Rs1,000 made through the Immediate Payment System (IMPS) channel, in a bid “to promote small ticket size transactions”.
Earlier, any IMPS transfer of up to Rs1 lakh out of an SBI bank account would attract a charge of Rs5, in addition to service tax. Those remitting amounts between Rs1,000 and Rs1 lakh will continue to shell out the charge of Rs5. The charge on transactions of over Rs1 lakh and less than Rs2 lakh will also remain unchanged at Rs15. The applicable Goods and Services Tax (GST) rate will apply to all IMPS transactions of over Rs1,000.
The reset in IMPS charges puts SBI at a disadvantage to its private sector peers. HDFC Bank, SBI’s closest rival in terms of asset-book size, earns a fee on all outgoing IMPS transactions. Account holders at the bank have to pay Rs5 for all transfers of up to Rs1 lakh and Rs15 for transfers of between Rs1 lakh and Rs2 lakh. The charges are the same at ICICI Bank.
Among other large state-owned lenders, Bank of Baroda (BoB) does not levy any charge on IMPS transactions, while Punjab National Bank (PNB) charges Rs5 for all IMPS transactions, according to the banks’ websites.