IMPS: how it works and its benefits

Your best friend calls you at 3 am asking for a lump sum of money. His father needs to get hospitalised immediately. Of course, you would not have so much of cash at home. You will have to resort to some online payment method. Over the years, Indian banks have adapted to the latest technology and have introduced online payment methods such as NEFT, RTGS, UPI and another frequently used medium is Immediate Payment Service (IMPS).

What is IMPS transfer and how does it function?

It is a 24*7 service that is widely used over smartphones. It helps customers to keep a check on their bank accounts and give/take funds from accounts. IMPS was introduced by National Payments Corporation in India (NPCI) in 2010. It is an instant mode of payment as funds get transferred within seconds. Here the funds get moved to the beneficiary’s mobile number, unlike RTGS and NEFT where you can transfer funds via net banking.

Here is how IMPS fund transfer function:

1) Ensure you have a bank account with the related bank
2) Enrol for the IMPS service for using the service via mobile
3) Once registered, you will receive Mobile Money Identifier (MMID). It is a 7-digit number of which the last three digits is your account and the first four digits unique identification number provided by the bank
4) You will have to provide the payee’s MMID and mobile number to conduct the transaction
5) You will be charged a fee for the operation that varies from bank to bank 

What are the services offered by IMPS?

1) Fund transfer using mobile number
2) Fund transfer using Aadhaar card
3) Fund transfer using IFSC and account number
4) Make merchant payments using MMID
5) USSD banking to for fund transfer through the feature phone
6) QSAM feature where you have to dial *99*99# and know the link status of your Aadhaar and bank account

What benefits do the users derive from IMPS transfer?

1) You can send money in real time. With 24*7 service, the money gets credited to the payee's account in few seconds
2) IMPS is safe and secure. You can conduct the transaction conveniently
3) There is no cap on cash to be transferred. You can move money as low as INR 1
4) You can conduct inter as well as intrabank payment
5) The IMPS fund transfer service can be done via mobile phones, net banking and ATM
6) The payee’s bank details are not required here. Knowing the MMID and mobile number is sufficient
7) You get the debit as well as credit information on your mobile number

8 reasons why UPI is a better system of fund transfer

Digitalisation has increased dramatically over the years. Today, smartphones are not just used to make calls or send SMS or chatting. Just a click of your finger can conduct various financial transactions. The National Payment Network Company (NPNC) has taken smartphone usage and banking transactions to a whole new level through Unified Payment Interface (UPI). The UPI launched in April 2016, assist customers to send and collect money using smartphones. Over 21 banks are linked to the UPI system. 

The UPI does not ask for bank details. Instead, it follows the Virtual Payment Address (VPA) mode for transferring money to another account.

How do users benefit using UPI payment method?

1) Cheapest money transfer system: UPI allows low-fund transactions and charges a fee as reasonable as INR 50 paise. No wonder it is considered a more economical model for transferring money than NEFT and RTGS.

2) Free from cash: Cash transactions rarely happen nowadays. Mobile wallets, net banking and card payment are on the rise. In case of small operations, cards and net banking options are not considered. If you have to do grocery shopping or purchase vegetables, it is feasible to use the UPI payment tool to complete the purchase. In fact, visit to ATMs have lessened, thanks to UPI.

3) No requirement of bank details: One of the major concerns with regards to online financial transactions has been the misuse of bank details. Whenever you make a card payment, details have to be provided. However, through UPI one need not share any bank details. All UPI asks for is VPA which is similar to our email ids. 

4) Instant transfer: While NEFT and RTGS work on a settlement basis, IMPS and UPI are 24*7 banking services. Transactions can be conducted anytime and anywhere. It works even during public holidays and weekends.

5) One UPI app for many accounts: One of the important benefits of UPI payment system is that you can link several bank accounts to it. A single UPI can serve many bank accounts. You can set a default account for making the payment.

6) Multiple UPI apps: It is not customary to use the UPI through your banking app. You can use your UPI account via different mobile banking apps as well. However, check the interface before using an app. Remember, the moment you use UPI from another bank, you would have to apply for a new VPA.

7) Registration period: In the RTGS and NEFT systems, the waiting period after registering a payee is either half n hour or 24 hours. In case of UPI, the beneficiary gets registered instantly and transferring the amount gets simpler. 

8) Cash on Delivery facility without paying money: Most of us are addicted to online shopping. The preferred mode of payment that people go for is cash on delivery. That is because what if the distribution is delayed? What if you do not receive the product? What if the product is defunct? However, if the purchase is big and there is not enough cash at home, you might have to rush to ATM. The UPI mode ends this hassle. You can make fund transfer with UPI. Ensure the online seller uses the UPI payment mode. You would receive payment approval from the seller once the fund is transferred. Nevertheless, you can hold it till the delivery is done securely.

Funds can be needed at any moment. Accidents, health mishaps, etc. are unpredictable. In such circumstances, online fund transfers play a crucial role. With so many benefits, Unified Payment Interface system stands out amongst the rest of online payment modes.

4 ways of transferring money

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.

NRI bank account and its types

Often, students who go abroad for studies find a secured job after the completion of their course and ultimately decide to settle there. Although the entire scenario might sound rosy, it is not as it seems. What about all the financial obligations back at your motherland? What if you are the only earning son/daughter in the family? How are you going to fund your parents?

Having an NRI bank account is the best way to keep your ties intact back home. Apart from the above-mentioned reasons, NRIs maintain a bank account in India so that they can save some overseas money in the Indian account and safely secure their hard-earned Indian money. Indian banks offer various services for NRIs so that they can manage their financial transactions smoothly and in a hassle-free manner.

Banks have provision for 3 kinds of NRI accounts. Let us learn in detail about them:

1) Non-Resident External (NRE) Savings Account: NRE accounts are useful for NRIs who wish to transfer their foreign currency to their loved ones in India with ease. However, you cannot deposit Indian money in this account. A plus point of this account is that you are exempted from taxes. You can open this account either as savings or fixed deposit. You can have a joint NRE account but avoid opening the account with an Indian resident. If you return to India and want to operate the NRE account, it can be converted into a Resident Account.

2) Non-Resident Ordinary (NRO) Account: This account is particularly useful for those who have constant flow of income in the form of pensions, dividends, etc. while they are staying overseas. For other needs or making local payments, an NRO account comes handy for NRIs. The first requirement while creating this account is that the source of income should be from India and not any other country. This account, too, can be opened as savings account and fixed deposit. The money kept in this account can be later easily transferred to any other NRO account. The interest earned via NRO account comes under taxable slab.

3) Foreign Currency Non-Resident (FCNR) Fixed Deposit Account: This kind of NRI bank account is useful whenever you face currency fluctuations in the country you are residing. You can keep your foreign currencies in the same denomination in this account. The account operates only in foreign currency. The interest earned through this account does not fall under the taxable slab. You can also open a joint FCNR account. The tenure for depositing amounts will be anywhere between 1-5 years. The currencies accepted in FCNR are Euros, Canadian dollars, US dollars, Australia dollars, Pounds sterling and Japanese yen.

It is a painful process to stay away from your family and loved ones. The same emotions are shared by your loved ones back home. Nothing can fill your absence during festivals and important occasions. However, your presence is covered up by being financially available for your family through these different NRI accounts.

6 tips before buying two-wheeler insurance for your sports bike

Owning a high-end bike is a tough task. Youngsters go for specifications, performance, and the rate that different dealers offer. After all the comparative analysis, they finally take a call and purchase a bike of their choice. High-end motorcycle calls for service and maintenance cost as well. With the help of insurance, you can avoid a hole on your pocket. And if you go for a sports bike, also known as the Superbike, such as Royal Enfield or Ninja Kawasaki, then the expenses might take a toll.

This is where two-wheeler insurance plays an important role. Now and then, sports bike owners venture out for road trips in the form of a race or an everyday journey. Motor insurance offers the right extent of coverage for your bike. In fact, purchasing appropriate two-wheeler insurance is a must as per the Motor Vehicle Act, 1988. They safeguard your bike from any external harm and handle the minute expenses as well.

Points for bike owners to remember before they purchase the right two-wheeler insurance plan:

1) Custom-made insurance policy: One of the biggest advantages for bike owners is that they get to customise their insurance plan. It is better to double check the plan you are willing to buy keeping in mind the aspects such as sufficient coverage, mileage ranges, liability protection, etc. with regards to the model of your sports bike. You can also negotiate to make the most of the custom-made deal.

2) Privilege discount: Many are not aware that insurance policies carry discounts/offers and additional benefits along with it. Many times, insurance lenders do not even reveal such information to the borrowers, once the later pays the premium. It is one of the primary reasons why the terms and conditions should be read thoroughly.


3) Zero depreciation add-on: It is also known as nil depreciation or bumper to bumper cover in the market. This aspect is particularly famous for a sports bike owner. People who opt for a customised deal, do not get access to this feature of insurance. However, those who go for a regular two-wheeler insurance plan, get the benefit of zero depreciation. It takes care of your sports bike's wear and tears.

4) Medical cover: This facility is useful if you will be using your sports bike for daily commute. In case you get hospitalised, and the bike gets severely damaged due to a road accident, and the motorcycle requires weeks or months to be repaired, then this add-on comes in handy. It will cover all your hospitalisation expenses until you receive the bike.

5) Philon Rider cover: Sachin Tendulkar recently promoted through his campaign how Philon riders require equal attention while riding on the bike. Now you can insure the person sitting behind you, especially in the case of unexpected accidents. Two-wheeler insurance provides medical coverage for your near and dear ones. You can choose a pre-decided loan in this add-on.

Having a sports bike is the in-thing today. However, taking care of your family is ultimately your responsibility. The first step towards that is getting an appropriate two-wheeler insurance plan that secures your bike as well as the future of your family.

5 ways to instant personal loans

‘Money cannot buy happiness,' is how the age-old saying goes. However, the fact remains, the entire world runs on money. We need money not just to purchase our day-to-day products but also to fulfil our other requirements. This is why banks such as HDFC, Axis Bank, ICICI Bank, offer money in the form of a personal loan.

What are personal loans?
It is an unsecured loan that does not require any collateral as security. They come for a fixed tenure and are provided to fund your immediate needs such as refurbishing your home or going for a dream holiday, etc.

Who are eligible for a personal loan?
Since this kind of loan does not require any collateral, your credit history and healthy income would suffice. If these factors are in place, there are chances of you obtaining an instant personal loan. At the time of application, you should keep your identity, address and age proof handy. The loan can be paid in monthly instalments as soon as they are processed. The tenure usually does not exceed beyond 2-3 years.

What are the factors that enable you to get personal loans quickly?

1) Credit score: Your credit history plays a crucial role in getting you an instant personal loan. If your credit score is somewhere near 750-800, you have high chances of getting the loan on time. However, if the score is around 300, the chances are slim.

2) Loan Amount: If you apply for a higher loan amount, you might face rejection from the lender. Nowadays, banks are wary of providing individuals with loans who are playing multiple EMIs. In fact, the loan amount you choose determines the amount of money you would have to pay monthly. In such cases, you can use the loan eligibility tool that assists in determining the loan amount you can afford based on your credit score.

3) Documentation process: The document requirements are simple such as PAN card, passport, driving license, voter’s ID, bank passbook, ration card, bank statements, payslips, etc. Hence, there should be no margin of error. However, it is advisable to read the document requirement instructions before submitting your loan application. If your documents are in place, your loan can get disbursed quickly.

4) Research: You can apply for a personal loan online as well. One of the significant advantages of getting the loan online is competitive analysis. As users’ emphasis on the interest rate, they can compare the interest rates from various banks and take a call accordingly. This will help you get a loan that is most suitable for you.

5) Simultaneous applications: Applying for multiple personal loans can hamper your credit score. You will be deemed as ‘credit hungry,’ which could, in turn, lead to rejection of your investment. And if your loan gets rejected initially, there is a high risk of not receiving any loan efficiently in the future.

The above pointers can help you get an instant personal loan. These factors hold true even if you opt for a home loan, car loan and others.

Top health insurance policies for families in 2018

From the food we eat to the air we breathe, everything has some level of contamination. This has seen Indians getting gripped by numerous diseases. More people are visiting the hospital frequently. This is where a health insurance comes into effect. Health insurance covers up your medical and surgical expenses. In fact, banks who are associated with top-ranked hospitals have insurances in place that provides cashless treatment.

Number of people buying health insurance in India has increased dramatically over a decade. Some of the points health insurance policies cover are:

1) Cashless treatment
2) Pre and post hospitalisation fees
3) Ambulance fee
4) Routine medical check-up expenses
5) In-patient hospital expenses
6) Treatment charges of pre-existing illness
7) Treatment charges availed at home

Following are the best health insurance plans for families in 2018:

1) Religare Care: Children who are 3 months old and adults who are 18 years and above can apply for this insurance. They offer lifelong renewability services and covers 6 family members. They provide 4 years of waiting period for those experiencing pre-existence medical condition and 2 years for policy-specified diseases. The best part of the policy is that there is no limit on ICU-stay charges. You can also include additional facilities to it such as ambulance cover, personal accident covers, etc.

2) Apollo Munich Optima Restore Family: The insurance covers children who are 5 years old. For adults, the entry level begins at the age of 18. Although the maximum entry level is 65 years, Apollo Munich also offers lifetime renewability. In case of a life-threatening disease, the insurance will cover the entire expense. It also comes with a daily-cash benefit.

3) Star Family Health Optima: It is one of the best health insurance plans in India as its entry-level begins at 16 days and provides lifetime renewability. However, the insurance covers only 5 members. Yet, it offers plenty of benefits such as ambulance expenses, hospital charges, in-house treatments, etc. This insurance has tie-up with more 6,000 hospitals in India. Hence, the payments are done swiftly. You can also maintain your records through this policy.

4) HDFC Health Suraksha: It boasts of being associated with 6,600-plus network hospitals that ensures smooth procedure for the patients. All hospitalisation expenses such as consumables like gloves & surgical appliances, OT, ICU charges, etc. are covered under HDFC Health Suraksha policy. If you take the plan for 2 years, the patient is guaranteed to receive 10 per cent discount. Also, there is no age limit on entry level.

Purchasing a health insurance in India has become a must with rise in unknown diseases such as Nipah Virus. It acts as a shield in case of health emergency. It is advisable to compare different health policies and opt for a the right one that suits your family’s needs.