India’s largest bank is providing financial incentives to its customers to go digital.
Beginning Feb. 1 the State Bank of India is waiving fees on digital transactions for instant money transfers in amounts up to Rs 5 lakh, they said today. That amount is up from the current cap of Rs 2 lakh for both immediate payment services and instant money transfers.
The State Bank of India currently does not levy any charges on immediate payment services and instant money transfer transactions of up to Rs 5 lakh that are completed through internet or mobile banking along with the YONO app.
If folks want to complete transactions through a bank it will cost them. While they get a pass on immediate payment service transactions under 1,000 Rs, they will be hit with fees ranging from Rs 2 to Rs 12 plus the national goods and services tax for amounts ranging between Rs 1,000-Rs 2,000. For amounts between Rs 2,000-Rs 5,000 lakh, the fee is Rs 20 plus the federal tax as of Feb. 1.
Conduct transactions on those amounts digitally through internet or mobile banking or the YONO app and the charges are waived.
No fees are also levied on National Electronic Funds Transfer services if they are completed digitally, the State Bank of India said. But again, conduct them at a branch and be prepared to pay Rs 2-Rs 20 plus federal tax. Real Time Gross Settlements conducted digitally are also free, but they incur fees starting at Rs 20 and peaking at Rs 40 plus federal tax if conducted at a branch.
The State Bank of India said the immediate payment service fees are consistent with those on National Electronic Funds Transfer and Real Time Gross Settlement transactions.