India’s largest bank: State Bank of India or SBI has set a new precedent for all banking institutions: From now on, SBI users can use IMPS service for free.
Earlier, SBI has removed NEFT and RTGS charges as well, now IMPS is also free.
This way, SBI users can now use every form for cashless transaction for free.
In terms of IMPS charges, there is a catch: In case a user brings in cash to the bank, and opts for IMPS mode of transaction, there will be a charge.
We will soon share the details of this charge.
SBI Makes IMPS Free
Immediate Payment Service or IMPS service is now absolutely free for all SBI users.
After RBI made NEFT and RTGS services free for all bank users, IMPS was still being charged by all the banks.
By making IMPS service free, SBI has now set a new precedent in the banking services, which, hopefully, will be followed by other banks soon.
IMPS or Immediate Payment Service is an instant money transfer service via mobile or Internet banking or even through a branch.
While NEFT and RTGS takes 3-4 hours to get the money transferred, IMPS is instant, and takes less than 5 minutes.
IMPS also supports USSD codes, and also transfer via ATM.
But IMPS Will Be Charged At Branches
In a smart move, SBI has kept the IMPS charges intact for transactions inside a bank branch.
Most probably, this has been done to discourage bank customers from coming to a branch, and carrying on a transaction, and instead, opt for free cashless transaction via mobile or Internet banking or USSD.
Here are the details of the charges for carrying out IMPS via bank branch:
Rs 0 for transaction till Rs 1000
Rs 2 plus GST for Rs 1001 to Rs 10,000
Rs 4 plus GST for Rs 10,001 to Rs 25,000 (Up from Rs 2 + GST now)
Rs 4 plus GST for Rs 25,001 to Rs 1,00,000 (Down from Rs 5 + GST now)
Rs 12 plus GST for Rs 1,00,001 to Rs 2,00,000 (Up from Rs 10 + GST now)
This is an interesting development, because transactions via mobile, ATM, internet banking and other alternate mediums (except branches) have now increased to 88.1%, compared to 84.1% last year.
We will keep you updated, as we receive more updates.
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