The advent of technology has resulted in secure and faster payment, courtesy of moving money from one bank to another. Earlier, it used to take aeons for the recipient to receive the money. Today, it is done in a jiffy. The online payment app has allowed customers to send and get cash instantly from anywhere.
Since people are inclined to online banking, it is only a few people who love to transact digitally and prefer the online mode over the conventional methods. India uses several modes to transfer money, such as UPI, digital wallets, etc. However, the most used mediums are:
- National Electronic Funds Transfer
- Real Time Gross Settlement
- Immediate Mobile Payment
The Reserve Bank of India introduced NEFT and RTGS systems. On the other hand, the National Payments Corporation of India launched IMPS. If you are wondering how to transfer money from one bank to another online, learn about these modes in detail:
NEFT
The funds here are sent out in batches and at a specified time of the day. The timings are different on the weekdays (Monday to Friday) and the weekend (Saturday). Money is sent to the recipients in a batch of 12 between 8 AM to 7 PM on weekdays and a batch of 6 on Saturday’s 8 AM to 1 PM. NEFT does not operate on Sundays and public holidays.
One of the USPs is that you can make small value transactions without worrying about the service charges and transaction fees.
RTGS
Unlike the NEFT system, RTGS allows only high-value transactions. The minimum amount should be around Rs. 2 lakh, while the maximum amount that you can transfer to someone’s account is Rs. 10 lakh. However, the biggest attraction of RTGS is that the funds settle in real-time, i.e. on the spot. They do not follow any batch system. For this purpose, your and the beneficiary’s account should be RTGS-enabled. Most of the banks are part of the RTGS network.
The RTGS system is particularly useful if you want to settle some business funds or send a lump sum of cash for emergency purposes.
IMPS
Banks widely use it across India. The best part about IMPS is that you can use it 24*7. It is a combination of NEFT and RTGS. While you can send low-value funds, you can also settle any financial matter without any hassle and instantly. Although you need to operate IMPS via online mode, it is available for those who send money via mobile. Many e-wallet apps in India use the IMPS system. The transaction fee is also low.
Online Banking has allowed users to send and receive money on the go. You need a decent broadband or a well-equipped smartphone to keep your finances under check.
