SBI to charge for big online IMPS transfers from Aug 15: How banks compare

Small online IMPS transfers stay free, but higher slabs will now attract charges; here's how SBI's revised rates stack up against other major banks

The State Bank of India (SBI) will revise its Immediate Payment Service (IMPS) charges for retail customers from August 15, 2025, introducing nominal fees for higher-value transactions made online. While smaller transfers will remain free.

 

What is IMPS?

Immediate Payment Service (IMPS) is a real-time, 24x7 interbank fund transfer system run by the National Payments Corporation of India (NPCI). It allows customers to send money instantly using internet banking, mobile banking apps, ATMs, or bank branches. Transfers can be done using account details (account number and IFSC) or a mobile number with a Mobile Money Identifier (MMID).

 

Unlike NEFT, which settles transactions in batches, IMPS processes payments immediately, including on Sundays and public holidays. However, once initiated, an IMPS transfer cannot be stopped or reversed.

 

What changes for online IMPS users?

Currently, online IMPS transfers are free for all SBI customers. From August 15:

 

-Up to Rs 25,000 – No charge

 

-Above Rs 25,000 to Rs 1 lakh –Rs 2 + GST per transaction

 

-Above Rs 1 lakh to Rs 2 lakh –Rs 6 + GST

 

-Above Rs 2 lakh to Rs 5 lakh –Rs 10 + GST

 

Salary package account holders, such as Defence, Railways, Central and State Government employees, will continue to enjoy waivers for online transfers under their specific schemes.

 

Branch IMPS charges unchanged

SBI has made no changes to IMPS fees for branch transactions. These range from Rs 2 + GST for the smallest slab to Rs 20 + GST for the highest, as per the bank’s schedule.

 

How rivals compare

 

-Canara Bank: Free for transactions below Rs 1,000; up to Rs 20 + GST for amounts up to Rs 5,00,000.

 

-Punjab National Bank: Rs 5 + GST for online transfers above Rs 1,001 to Rs 100,000; Rs 10 + GST for higher amounts.

 

-ICICI Bank: Rs 2.5+ GST on up to Rs 1000 for online transfers, Rs 5+ GST for Rs 1000 to Rs 100,000.

 

-Kotak Mahindra Bank: No charges for IMPS via net or mobile banking.

 

-Indian Bank (from August 8): Digital transfers up to Rs 1,000 remain free; charges up to Rs 15 + GST for higher amounts, with separate branch rates.

 

Why does it matter?

IMPS is one of the fastest and most accessible ways to send money in India. For SBI customers, August 15 will bring a small but significant shift, smaller online transfers will remain free, but bigger transactions will now come with a price tag. Frequent high-value users may want to compare costs with alternatives like NEFT, RTGS, or UPI before sending money.

 

(Disclosure: Entities controlled by the Kotak family have a significant shareholding in Business Standard)