State Bank of India (SBI) has revised the prices which it charges on Immediate Payment Service(IMPS) for transferring money. IMPS is an instant interbank electronic fund transfer service through mobile phones. Apart the IMPS fund transfer can also be made through ATM, Internet Banking etc.
According to the new charges applicable, if a customer wants to transfer ₹1,000 then he won’t have to pay any charges. While, if he transfers from ₹1,000 to ₹1 lakh he will be charged a fee of ₹5, exclusive of applicable goods and services tax (GST). But for transfers from ₹1 lakh to ₹2 lakh, users would need to pay a charge of ₹15, plus applicable GST.
SBI, however, isn’t the first bank to change its charges levied for various services post the implementation of GST. As the banking and finance services are put under the tax bracket of 18% the banks have to make changes in their whole service system and charges applicable. While, according to the SBI, GST will remove the cascading effect of the tax on prices of goods and services, thus reducing production costs.