Since the time demonetisation has been introduced, digital transactions have increased drastically. Most of the people use one or the other method to conduct online transfer. Indian banks are also assisting individuals in making most of transferring money online through their technology-based services.
Banks offer several online payment methods such as Real Time Gross Settlement (RTGS) transfer, National Electronic Funds Transfer (NEFT), Immediate Payment Service (IMPS) and Unified Payment Interface (UPI). Each of these methods offer different features and flexibility. Apart from these, banks have their own digital wallets to ensure consumers experience convenience while transferring funds.
Here is a detailed information on how these online banking payment medium works:
1) NEFT mode: It is the most commonly used method of transferring money from one bank account to the other. The system follows deferred settlement policy. It means the money can be moved in batches. Currently, 12 settlements run between 8 am to 7 pm on weekdays, and 6 settlements between 8 am and 1 pm on Saturdays. There is no limit on the transferred amount. However, certain banks do add a cap. NEFT is conducted in the following manner:
- Your net banking user id and password
- Your family/loved ones’ full name, account number and 11-digit IFSC code
- You will have to wait for at least 24 hours after you add the beneficiary’s details
- Go to ‘Transfer funds’, select the payee’s name and transfer the desired amount by entering the OTP
- The payee will receive the money instantly if it is done within the banks working hours or will be done in the next settlement
2) RTGS payment: This kind of method is used for high transactions. The minimum amount that can be transferred through RTGS payment is INR 2 lakh. There is no limitation, though. The transfer takes place in real time during the RTGS business hours. The RTGS window is open between 9 am to 4:30 pm on weekdays and 9 am to 2 pm on Saturdays. The payment takes 30 minutes to credited to the beneficiary’s account. Yours’ as well as the payee’s account should be RTGS-enabled. The remaining process is the same as that of NEFT.
3) IMPS medium: It is one of the famous and fastest medium for transfer of funds. It is widely used across banks. IMPS functions 24*7, i.e. funds can be transferred any day and at any time. Just like NEFT, IMPS allow low-value fund transfer. However, it immediately settles the funds. The IMPS facility is provided only on online banking services. Certain banks may give SMS-based IMPS service for mobile banking users. Mostly digital wallets use the IMPS service to credit money.
4) UPI method: This system is widely used by those who conduct financial transactions via mobile banking. They can get the money transferred using Virtual Payment Address (VPA). The process is short, and you receive the fund instantly. This system also follows the 24*7 method and happens on real-time basis. The best part is, you need not share your personal bank details while getting the transfer done. UPI’s minimum amount transfer is INR 1 lakh.
You can select an option on the basis of the amount and time factor. Smartphone users can go for UPI/IMPS method while those who are well-equipped with net banking can consider NEFT/RTGS transfer.
Banks offer several online payment methods such as Real Time Gross Settlement (RTGS) transfer, National Electronic Funds Transfer (NEFT), Immediate Payment Service (IMPS) and Unified Payment Interface (UPI). Each of these methods offer different features and flexibility. Apart from these, banks have their own digital wallets to ensure consumers experience convenience while transferring funds.
Here is a detailed information on how these online banking payment medium works:
1) NEFT mode: It is the most commonly used method of transferring money from one bank account to the other. The system follows deferred settlement policy. It means the money can be moved in batches. Currently, 12 settlements run between 8 am to 7 pm on weekdays, and 6 settlements between 8 am and 1 pm on Saturdays. There is no limit on the transferred amount. However, certain banks do add a cap. NEFT is conducted in the following manner:
- Your net banking user id and password
- Your family/loved ones’ full name, account number and 11-digit IFSC code
- You will have to wait for at least 24 hours after you add the beneficiary’s details
- Go to ‘Transfer funds’, select the payee’s name and transfer the desired amount by entering the OTP
- The payee will receive the money instantly if it is done within the banks working hours or will be done in the next settlement
2) RTGS payment: This kind of method is used for high transactions. The minimum amount that can be transferred through RTGS payment is INR 2 lakh. There is no limitation, though. The transfer takes place in real time during the RTGS business hours. The RTGS window is open between 9 am to 4:30 pm on weekdays and 9 am to 2 pm on Saturdays. The payment takes 30 minutes to credited to the beneficiary’s account. Yours’ as well as the payee’s account should be RTGS-enabled. The remaining process is the same as that of NEFT.
3) IMPS medium: It is one of the famous and fastest medium for transfer of funds. It is widely used across banks. IMPS functions 24*7, i.e. funds can be transferred any day and at any time. Just like NEFT, IMPS allow low-value fund transfer. However, it immediately settles the funds. The IMPS facility is provided only on online banking services. Certain banks may give SMS-based IMPS service for mobile banking users. Mostly digital wallets use the IMPS service to credit money.
4) UPI method: This system is widely used by those who conduct financial transactions via mobile banking. They can get the money transferred using Virtual Payment Address (VPA). The process is short, and you receive the fund instantly. This system also follows the 24*7 method and happens on real-time basis. The best part is, you need not share your personal bank details while getting the transfer done. UPI’s minimum amount transfer is INR 1 lakh.
You can select an option on the basis of the amount and time factor. Smartphone users can go for UPI/IMPS method while those who are well-equipped with net banking can consider NEFT/RTGS transfer.
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