In a welcome development, India’s top lender, the State Bank of India (SBI) has reduced the charges for National Electronic Funds Transfer (NEFT) and Real Time Gross Settlement (RTGS) by 75 percent. The reduced rates will be applicable from July 15. The move is aimed at promoting digital transactions. The revised rates for NEFT and RTGS will be applicable on transactions done through the bank’s website and mobile banking. Earlier, the bank used to charge Rs 2 for transactions up to Rs 10,000 done through NEFT. This has now been reduced to Rs 1. However, GST of 18 percent will be applicable on the charges. For transactions between Rs 10,000 to Rs 1 lakh, the new rate is Rs 2. Earlier, this was Rs 4.
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. SBI have also waived off the charges for Immediate Payment Service (IMPS) for transactions up to Rs 1,000. Speaking about the drastic reduction in NEFT and RTGS charges, Rajnish Kumar, managing director (NBG) at SBI said, “Digitalization and excellence in operations is one of our core strategies in providing convenience to customers. It has resulted in reducing turnaround time along with extended benefits to the customers.”