Public sector State Bank of India (SBI) today announced it would not levy any service charge on online Immediate Payment Service (IMPS) transactions up to Rs 5 lakh. Earlier, online IMPS transactions up to Rs 2 lakh were exempted from service charges.
“In an aim (sic) to encourage customers to adopt digital banking, SBI has not levied any service charges on IMPS transactions up to Rs 5 lacs, done through internet banking/mobile banking, including YONO,” the bank said in a statement.
For IMPS transactions conducted through bank branches, a new slab of Rs 2 lakh to Rs 5 lakh has been added for levying service charges. “The proposed service charges for this slab is Rs 20 + GST,” SBI said, adding that this directive will come into effect from 1 February.
Notably, IMPS transactions conducted at bank branches for an amount ranging from Rs 1,000 to Rs 10,000 draw a service charge of Rs 2+GST. If the transaction amount ranges from Rs 10,000 to Rs 1,00,000, a charge of Rs 4+GST is levied. On transactions of amounts between Rs 1,00,000 and Rs 2,00,000, a charge of Rs 12+GST is imposed.
The same service charge, as per the above slabs, is levied on NEFT/RTGS transactions through the bank branch.
In comparison to NEFT/RTGS, IMPS is more popular among net-banking users due to its 24×7 availability, and instant domestic funds transfer feature.
In a bid to promote digital transactions, the Reserve Bank on 8 October 2021 proposed to increase the per transaction limit from Rs 2 lakh to Rs 5 lakh through IMPS.
IMPS managed by the National Payments Corporation of India is an important payment system providing 24×7 instant domestic funds transfer facility and is accessible through various channels like internet banking, mobile banking apps, bank branches, ATMs, SMS and IVRS.
With RTGS now operational round the clock, there has been a corresponding increase in settlement cycles of IMPS, thereby reducing the credit and settlement risks.