The State Bank of India has increased the limit on IMPS (Immediate Payment Service) transactions from Rs 2 lakh to Rs 5 lakh.
IMPS, offered by National Payments Corporation of India, empowers customers to transfer money instantly through banks and RBI authorised Prepaid Payment Instrument Issuers (PPI) across India.
The motive behind the move was to encourage customers towards digital banking.
For transactions below Rs 2 lakh at the banks, transaction charges are nil, while for between Rs 2-5 lakh, it is kept at Rs 20 plus the Goods and Service Taxes applicable.
However, charges are nil for transactions done through net banking or SBI's application 'YONO'.
"In case of Branch Channels, there has been no change in the service charges for IMPS done through the Branch Channel in the existing slabs. However, a new slab for Rs 2,00,000 to Rs 5,00,000 has been added and the proposed service charges for this slab is Rs 20 + GST w.e.f 01.02.2022," the bank said in a statement.