Do you want to transfer money from one bank account to another? To your good news, there are different types of money transfers in our country to help you out. With every passing day, there is a great development in technology, and this technology enables people to carry out online transactions easily. As more and more people become aware of online transactions, these methods are getting more popular in people’s daily lives. The advancement of technology has made all types of money transfers in India easy and convenient.
Here’s a list of the different types of money transfers in India, you should know about:
NEFT
NEFT stands for National Electronic Fund Transfer. Transferring money from one bank account to another is considered one of the most popular types of money transfer in India. This process has no maximum limit on money transfer amount, but the individual banks have the right to set any limit. For carrying out NEFT, you need to have the receiver’s bank account number and the bank’s IFSC code. You need to follow the below-mentioned steps to send money:
- Firstly, as you open the Fund Transfer section, choose the option “Fund transfer to other banks.”
- Now, you need to provide all the receiver’s bank details, like the account number and the IFSC code.
- Fill in the amount you want to send
- Recheck all the details, accept the terms and conditions, and complete the process.
RTGS
The term RTGS refers to Real Time Gross Settlement. This money transfer process is almost similar to NEFT, but the difference lies in the minimum amount and how much time NEFT takes to credit the amount in the receiver’s account. RTGS is used for making large transactions that are more than two lakhs. However, this process has no maximum limit, making it easier for people to make huge transactions.
As the name itself suggests, the money is transferred on a real-time basis, and it is one of the main differences between NEFT and RTGS. It proves to be of great help at times of urgency, as the money gets credited to the receiver’s bank account within just thirty minutes of completing the process. Steps for carrying out the RTGS transfer are mentioned below:
- Go to the Fund Transfer Section.
- Choose the ‘transfer to other banks’ option.
- Enter all the required details.
- Recheck the details, and agree to the terms and conditions.
- Click on Submit.
IMPS
IMPS stands for Immediate Payment Service. IMPS brings all the benefits of RTGS and NEFT on the same plate. As the name suggests, IMPS provides the benefits of instant transfer to users. To your good news, the minimum limit for carrying out the IMPS money transfer is set very low. Speaking of RTGS vs IMPS, in RTGS, you need to make a minimum transfer of two lacs, but in IMPS, you can enjoy the benefit of instant money transfer to your receiver’s bank account in case of small transactions too. However, to carry out the process, you must know the receiver’s IMPS id and his registered mobile number. Carry out the following steps to make a successful IMPS transaction:
- Get access to your mobile banking or net banking using your ID and password.
- Open the Fun transfer section.
- Choose the option of IMPS as the mode of transfer
- Fill in the amount you want to send
- Click on the confirm button
- You will need to submit the OTP you will receive on your registered mobile number.
- Enter the OTP
- Recheck all the details, and click on the Submit option.
UPI
UPI or Unified Payments Interface is one of the most convenient types of money transfer methods from bank to bank. You just need to have a smartphone and a stable internet connection to carry out the transaction. This process is carried out using VPA or Virtual Payment Address. The plus point is that you don’t have to carry any details of the receiver’s bank account. Instead of their bank account number and IFSC code, you just need to have their registered mobile number with UPI or their name. Also, you can use this method to transfer money at any time; it is available 24/7. UPI allows you to make transactions of up to 1 lac, which forbids you to allow this method while making large transactions.
Cheque
Although it is a traditional method of transferring money from bank to bank, many people consider it a convenient option for money transfer. You can just put your name on the payee section of the check you have drawn. Then, fill in the receiver’s bank account number and the amount you want to transfer. Also, don’t forget to put your signature on the check, ensuring that it matches your signature associated with your bank account.
The process is more straightforward and more immediate if done within the bank. However, in the case of other banks, the receiver may need to wait for two to three days. There is no upper limit in transferring money through cheque, but the receiver may face restrictions during the withdrawal process. If he wants to withdraw in branches other than his home branch, he may not withdraw more than 50,000.
You must have been very clear about the different types of money transfers by now. Now, all you need to do is choose the method which suits your requirements. IMPS or UPI will work great if you want to send a small sum instantly. However, for larger transactions, you may go for RTGS. If you face any net banking or mobile banking issues, you can opt for cheque transfers. Don’t forget to recheck all the details of the receiver before proceeding with the transaction, or else you may lose money. Don’t stress too much; choose the ideal method, and enjoy the seamless process of transferring money.
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