There was a time when transferring money meant either using a cheque or withdrawing the money in cash and then transferring into the beneficiary account. However, with the internet and the rising popularity of smartphones, the banking scenario has changed forever. Transferring money is no longer hectic and you do not need to write out a cheque as well.
Here is a look at the three ways in which you can now transfer money online.
1. Unified Payments Interface or UPI
This is the newest form of online payment and transaction procedure introduced by the Government of India, in a bid to promote cashless transactions. It is basically a mobile app that users need to install in their Android, iOS or Windows smartphones. It allows the user to link all of their bank accounts into the same app and conduct transactions using the app itself.
The transaction occurs immediately in most cases, unlike other methods of money transfer, such as NEFT. The user only needs four things to conduct a transaction using the UPI apps, namely, a phone with internet facility, MPIN registered by the user upon installation of the app, and the registered phone number.
People can not only send money using the app but can also receive funds through it. However, at present, a single transaction limit imposed is Rs. 1 Lakh.
2. Internet banking
Internet banking is divided into 4 distinct parts, namely NEFT, RTGS, ECS, and IMPS. NEFT offers a one-to-one fund transfer using the internet. While it is a completely safe procedure, NEFT transactions occur in batches throughout the day and therefore are not instantaneous.
RTGS, on the other hand, is a real-time transfer of funds from one account to another. However, this method is only useful if you are planning to transfer large amounts of money. The minimum fund transfer for RTGS is Rs. 2 Lakhs.
ECS is a procedure for online banking, which is primarily useful in payment of bills and utilities. This form of payment reduces the need for maintaining track of bills and paper trails, thus improving the overall experience for you as well as the beneficiary.
3. Mobile banking
Mobile banking refers to the transfer of fund that takes place using your phone. While internet banking can be conducted using a computer as well, mobile banking can only be initiated using the phone. In the case of mobile banking, the transaction is processed either through the internet or through SMS. Additionally, for NEFT payments using mobile banking, there is no need to register the beneficiary, which can be a time-consuming process.
Therefore, it is clear how the internet has made the cashless transactions and money transfer simpler and more convenient.
Here is a look at the three ways in which you can now transfer money online.
1. Unified Payments Interface or UPI
This is the newest form of online payment and transaction procedure introduced by the Government of India, in a bid to promote cashless transactions. It is basically a mobile app that users need to install in their Android, iOS or Windows smartphones. It allows the user to link all of their bank accounts into the same app and conduct transactions using the app itself.
The transaction occurs immediately in most cases, unlike other methods of money transfer, such as NEFT. The user only needs four things to conduct a transaction using the UPI apps, namely, a phone with internet facility, MPIN registered by the user upon installation of the app, and the registered phone number.
People can not only send money using the app but can also receive funds through it. However, at present, a single transaction limit imposed is Rs. 1 Lakh.
2. Internet banking
Internet banking is divided into 4 distinct parts, namely NEFT, RTGS, ECS, and IMPS. NEFT offers a one-to-one fund transfer using the internet. While it is a completely safe procedure, NEFT transactions occur in batches throughout the day and therefore are not instantaneous.
RTGS, on the other hand, is a real-time transfer of funds from one account to another. However, this method is only useful if you are planning to transfer large amounts of money. The minimum fund transfer for RTGS is Rs. 2 Lakhs.
ECS is a procedure for online banking, which is primarily useful in payment of bills and utilities. This form of payment reduces the need for maintaining track of bills and paper trails, thus improving the overall experience for you as well as the beneficiary.
3. Mobile banking
Mobile banking refers to the transfer of fund that takes place using your phone. While internet banking can be conducted using a computer as well, mobile banking can only be initiated using the phone. In the case of mobile banking, the transaction is processed either through the internet or through SMS. Additionally, for NEFT payments using mobile banking, there is no need to register the beneficiary, which can be a time-consuming process.
Therefore, it is clear how the internet has made the cashless transactions and money transfer simpler and more convenient.
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