State Bank of India (SBI), the largest commercial bank in the country, on Friday announced it has waived off RTGS and NEFT charges for YONO, internet banking (INB), and mobile banking (MB) for customers from July 1, 2019.
The lender will also waive-off IMPS charges for its INB, MB, and YONO customers effective from August 1, 2019.
Speaking on the occasion, PK Gupta, MD (Retail & Digital Banking), SBI, said,
“In sync with our strategy and Government of India’s vision to create a digital economy, SBI has taken this step to promote the use of YONO, internet banking, and mobile banking for doing NEFT and RTGS transactions without incurring any cost.”
At March-end 2019, the number of SBI customers using internet banking were more than six crore, while 1.41 crore persons were using mobile banking services. The Bank, which has 22,010 branches in India, counts an ATM / CDM network of over 58,000. According to SBI, the waiver in NEFT, IMPS, and RTGS charges will attract more customers towards digital transactions.
Additionally, the Bank has already reduced NEFT and RTGS charges for customers transacting through branch network by 20 percent across all slabs, it said in a statement.
To boost the digital payments, Finance Minister Niramala Sitharaman, on July 5, also announced removal of Merchant Discount Rates (MDR) on digital transaction made at big establishments having an annual turnover of more than Rs 50 crore.
In addition to this, to discourage making business payments in cash, the Finance Minister announced a tax deducted at source or TDS of two percent for businesses proposed on cash withdrawals exceeding Rs one crore annually from their bank account.
The digital payments market In India is set to grow to $1 trillion by 2023 led by growth in mobile payments, which are slated to rise from $10 billion in 2017-18 to $190 billion by 2023, according to a NITI Aayog's report.
(Edited by Megha Reddy)