Synopsis: State Bank of India (SBI) is going to implement new fees and charges for digital IMPS transfers. The small transactions may remain unaffected but sending anything over ₹25,000 via the YONO app or internet banking shall now attract a tiered service fee.
State Bank of India customers are about to experience the notable change as the bank prepares to implement a revised fee structure for its Immediate Payment Service (IMPS). The changes would be felt from February 15th 2026. This marks a policy shift from SBI’s earlier free digital IMPS model. As it moves from a largely free model to a tiered system where the cost is directly proportional to the amount being transferred.
The bank has always encouraged digital adoption by waiving such fees to compete with cash. However, experts says the increasing operational costs associated with maintaining a proper security and 24/7 payment system have necessitated this financial recalibration.
What is the New ₹25,000 Threshold?
This update brings in the introduction of specific charges for online transfers that exceed the number of ₹25,000. Previously users of the YONO app, internet banking, and mobile banking platforms enjoyed the convenience of sending significant amounts without worrying about service fees. Under the new guidelines the transactions up to ₹25,000 will remain free of cost but any amount above this limit will attract a service charge plus applicable Goods and Services Tax.
The transfers ranging from ₹25,001 to ₹1 lakh will now cost ₹2 plus GST. As the transfer amount increases the fee also will. The slab between ₹1 lakh and ₹2 lakh will attract a charge of ₹6 plus GST. The highest tier which includes transfers from ₹2 lakh up to the daily limit of ₹5 lakh, customers will be required to pay ₹10 plus GST. These amounts may seem nominal in isolation but they represent a significant change for business owners and individuals who move large sums of money multiple times a week.
Physical Branch Transactions
It is important to note that these changes are mainly on digital channels to align them with the costs of providing instant settlement. Interestingly, the bank has decided to keep the existing charges for IMPS transactions conducted through physical branches unchanged.
If you walk into an SBI branch to initiate an IMPS transfer then you will continue to pay the same rates that have been in place for years. These branch charges generally vary by amount, rising up to about ₹20 for higher transfers. The decision to specifically introduce fees for digital transfers suggests that the bank is looking to monetize the convenience of the IMPS platform.
Also read: 10 Smart and Legal Ways to Save Tax in India That Every Salaried Individual Should Know
Categories Exempt from the New Charges
However, not all SBI account holders will be affected by these new costs. The bank has provided a wide net of exemptions for various salary and special savings packages to make sure that certain segments of society are not penalized. Customers holding Defense Salary Package accounts that include the Army, Navy, and Air Force variants, will continue to enjoy free IMPS transfers regardless of the amount. Similarly, Central or State Government Salary Packages and specialized accounts for the Police or Railways remain exempt.
Furthermore, accounts like the Shaurya Family Pension Account and the SBI Rishtey Family Savings Account are shielded from these revisions. This exemption policy particularly towards government employees, armed forces personnel, and specific institutional segments who often form the backbone of the bank’s loyal customer base are not burdened by the additional costs of managing their personal finances digitally.
Security Considerations with the Decision
The IMPS is a real time process that is an irreversible service. After the send button is clicked and the transaction is authorized the amounts are moved almost immediately to the receiver account. Due to this speed there is no window to cancel or reverse a payment if a mistake is made. Users must double check all beneficiary details and perhaps even send a small test amount to verify the recipient before proceeding with a large transfer that now also carries a service fee.
The new charges would also help in reminding the sender that the amount is indeed of a large amount and thus the charges. This will lead to double checking everything. Eventually this would help in increasing awareness in the users.
Conclusion
The shift in SBI’s IMPS fee structure reflects a broader meaning in the banking industry and that is the balance between promoting digital growth and covering the high costs of 24/7 financial infrastructure. The new charges may seem minor for a single transaction but they represent an important policy reversal for a bank that previously was considered a wise choice for a free digital model. Most of the average user would see a minimal impact as long as transfers stay below the ₹25,000 mark.
Written by Kenbi Riba
