SBI cuts NEFT, RTGS charges up to 75%

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The decline in charges will be effective from July 15, 2017 and will be applicable on money transactions through internet banking and mobile banking services. They will be applicable only to transfers made through internet or mobile banking.

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. Along easily of customers, this step will entice more customers towards digital transactions, the bank said in a press release. NEFT and RTGS are electronic money transaction mechanisms used to transfer money between two different bank accounts anywhere in the country.

In case of NEFT transactions now, SBI used to charge Rs 2 for transferring a sum of Rs 10,000 through internet banking or mobile banking.

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"Rajnish Kumar, Managing Director, SBI said, "... He added that this has resulted in reducing turnaround time along with extended benefits to customers. According to a Financial Express report, ICICI and HDFC banks are SBI's closest competitors in digital transactions and already earn more than the public sector major. This fee has now been halved to Rs 1 for both mediums. Earlier, this was Rs 4. But for transfers from ₹1 lakh to ₹2 lakh, users would need to pay a charge of ₹15, plus applicable GST.

RTGS charges that were earlier Rs 20 for transactions between Rs 2 lakh and Rs 5 lakh, have now been reduced to Rs 5 only. Inward bank transactions are free in HDFC and ICICI. Services available under IMPS include funds transfer and remittances and merchant payments. For instance, a customer who initiates a real time gross settlement (RTGS) of over Rs 2 lakh in a branch will have to pay Rs 25 (excluding goods and services tax) at the branch.

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