SBI to cut NEFT, RTGS charges from tomorrow

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.

By: ENS Economic Bureau | Mumbai | Published:July 14, 2017 2:42 am
sbi, state bank of india, imps, neft, rtgs, money transfer charges, gst, digital transaction charges, banking news, sbi news 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.(File Photo)

A day after it waived charges on Immediate Payment System (IMPS) transactions of up to Rs 1,000, 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 Rs 10,000 will now attract a charge of Rs 1, transactions between Rs 1,001 and Rs 1 lakh will be charged at Rs 2, those between Rs 1 lakh and Rs 2 lakh will be charged Rs 3, while transactions involving higher amounts will be charged Rs 5. Earlier, these charges were Rs 2, Rs 4, Rs 12 and Rs 20, respectively.

RTGS transactions of between Rs 2 lakh and Rs 5 lakh will now be charged Rs 5, as against Rs 20 earlier, and those involving higher amounts will be charged Rs 10, down from Rs 40 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 Bank and HDFC Bank, State Bank of India’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 Rs 2.50 for NEFT transactions of up to Rs 10,000, Rs 5 for transactions between Rs 10,001 and Rs 1 lakh, Rs 15 for transactions between Rs1 lakh and Rs 2 lakh and Rs 25 for transfers of higher amounts.

RTGS transactions between Rs 2 lakh and Rs 5 lakh are charged Rs 25 by both ICICI Bank and HDFC Bank, while transactions involving amounts larger than Rs 5 lakh attract a charge of Rs 50.

In June, SBI reported 3.13 crore outward NEFT transactions, while the corresponding volumes for ICICI Bank and HDFC Bank were 1.2 crore and 2.18 crore, respectively. Outward RTGS transactions at SBI added up to 13.4 lakh, while the numbers for ICICI Bank and HDFC Bank were 6.28 lakh and 14.28 lakh, respectively.

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