The introduction of various payment systems in India has made it easier to transfer money. Unlike earlier, you can transfer money from one bank account to another almost immediately. Due to various payment options that are available, money can be sent and received from anywhere at any given time.
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Different Methods to Transfer Fund Online
The three different methods by which money can be transferred online are mentioned below:
- Immediate Payment Service (IMPS)
- National Electronic Funds Transfer (NEFT)
- Real-Time Gross Settlement (RTGS).
The transfer of funds is completed immediately via IMPS. You can transfer money 24x7 by using this method. IMPS can be completed by using internet banking or mobile banking. Various digital banks in India use IMPS services to transfer money. Depending on the bank, the transaction charges may vary.
Under NEFT, you can transfer funds from one bank branch to another bank branch that is participating under the scheme. However, NEFT transactions take longer when compared to IMPS.
Another payment mode that occurs in real-time and on a gross basis is RTGS. RTGS is mainly used for higher value transfers that require immediate clearance. RTGS transactions can be completed only during hours.
Differences between NEFT, IMPS, and RTGS
|Minimum transfer value||Rs.1||Rs.2 lakh||Rs.1|
|Maximum transfer value||Depends on the customer segment||No upper limit||Rs.2 lakh|
|Type of settlement||Batches||One-on-one settlement||One-on-one settlement|
|Speed of settlement||2 hours (subject to cut-off timings and batches)||Immediately||Immediately|
|Service availability||24/7||Depends on the bank||24/7|
Important Things to Consider Before Initiating a Fund Transfer
- Timings: Depending on the bank, the timings for each transfer will vary. In the case of RTGS, depending on the bank and the location, the operating hours will vary. IMPS and NEFT payment modes are available 24x7.
- Transaction Fee: A separate fee is levied for the transfer of money. However, in case you are receiving the money, no fee is levied.
- GST: As per the latest norms, GST will be applicable on the transaction fee.
- Network: Both the banks must be part of the scheme for the transfer to take place.
Given below are some of the important things to know when using the different methods to transfer money:
- Fund Transfer Charges: Any transfer of money will involve certain charges. According to the RBI, the banks decide the charges that are levied for different fund transfers.
- Fund Settlement Speed: Depending on the type of transfer, the fund settlement speed will be different. The amount of time that is required to transfer money from one bank account to another bank account is the fund settlement speed.
- Service Availability: Depending on the type of transfer, the timings will vary. IMPS and NEFT are available 24x7, while RTGS operates only during banking hours.
- Fund Transfer Limit: The amount of money that can be transferred is the fund transfer limit. The limit will be different for different payment methods.
Check IFSC Code for Top Banks:
|State Bank of India IFSC Code||HDFC Bank IFSC Code||Indian Bank IFSC Code|
|Axis bank IFSC Code||Canara bank IFSC Code||ICICI Bank IFSC Code|
FAQ's of NEFT, RTGS & IMPS
What is the minimum amount for an IMPS transfer?
Ans: The minimum amount transferable through an IMPS transfer can be as low as Re.1.
Are there any extra charges for an IMPS transfer?
Ans: The Finance Ministry of India, in order to encourage digital transactions, has removed any kind of additional fee for an IMPS mode of money transfer.
Which mode of payment between NEFT or RTGS is faster?
Ans: The faster form of payment depends on the urgency and the amount of your transaction. If you have a transaction above Rs.2 lakh, RTGS is a faster and more effective mode of payment. However, for any payments which are of lower amounts, NEFT is a more efficient mode of payment.
Is RTGS mode of payment safe?
Ans: RTGS is a highly safe and secure mode of payment which is monitored by the government. It is even more secure as it is used majorly for money transfers of higher amounts.
How many times can NEFT transactions be done in a day?
Ans: NEFT transactions can be made any time of the day between 8 a.m. in the morning to 6:30 p.m. in the evening. There is no limit to the number of NEFT transactions in a day.
Other IFSC Related Article
|NEFT Timing||Digital Wallet||Mobile Wallet|
|SBI UPI||Demand Draft|
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