With the advent of technology, the banking sector has also changed, and one of the primary concerns that technology has solved is the transfer of funds from one bank account to another. These days, the fastest way to send money is through mobile banking using e-wallets, but one has to use the online mode to send huge amounts. There is a limitation when it comes to doing a financial transaction on mobile. In India, there are different ways to transfer money online based on the amount and settlement timings.
Basic requirement to transfer funds online
RTGS, NEFT, IMPS are different ways through which you can transfer funds. To transfer funds online you must have internet banking credentials of your savings or current account. Once you log in, you must first register or add beneficiary information if you are doing NEFT/IMPS/RTGS online. Once it is added, you can use any of the methods to transfer funds. But which is a better mode to transfer funds? It depends on the amount you want to transfer and the timing of the transfer. Let us understand more to know which is a better mode to transfer funds.
Comparing NEFT, RTGS, IMPS, UPI
|Full-Form||National Electronic Fund Transfer||Real-Time Gross Settlement||Immediate Mobile Payment Service||Unified Payment Interface|
|Settlement Type||Half Hourly Batches||Immediate Settlement||Immediate Settlement||Immediate Settlement|
|Minimum Transfer||Rs.1||Rs.2 lakh||Rs.1||Rs.1|
|Maximum Transfer||No Limit||No limit||Rs.2 lakh||Rs. 1 lakh|
|Payment options||Online and Offline||Online and Offline||Online||Online|
|Timings||In Batches- 24/7||Weekdays: 9:00 AM - 4:30 PM||24/7, 365 days||24/7, 365 days|
|Charges||No Charges||Charges differ with bank and amount||No charges||NO charges|
National Electronic Fund Transfer (NEFT)
The National Electronic Fund Transfer System (NEFT) is an electronic fund transfer system that settles transactions in batches. NEFT service can be availed in a bank branch using cash, cheque, or a DD. Also, it can be using a net banking facility from your bank account. The maximum amount you can submit through NEFT in cash is Rs 50,000.
Banks have been instructed not to charge their savings bank account holders any fees for NEFT funds transactions initiated online from January 1, 2020. NEFT facilities are now available all the time, i.e. 24×7, 365 days. If you want to process NEFT at a bank, you'll have to pay fees depending on the various slabs.
Real-Time Gross Settlement (RTGS)
It is the method of settling funds in real-time, on an order-by-order basis. To put it another way, the request to move or settle funds is handled directly rather than in batches as it is done in NEFT.
The RTGS framework is optimized for high-volume transactions. As a result, the minimum amount that can be sent via RTGS in a single day is Rs 2 lakh. The maximum amount per day is Rs 10 lakh. On a working day, banks will use the RTGS service window for consumer transactions from 8 a.m. to 6 p.m. Banks charge service charges for the amount depending on the value of the transaction. The charges differ with different banks and the timing of transactions.
SBI Charge on RTGS
SBI charges for a transaction between 9 AM to 12 PM are Rs. 25 for a transaction between Rs 2 lakh to Rs 5 lakh. Above Rs 5 lakh is Rs. 51.
SBI charges for a transaction between 12 PM to 3:30 PM is Rs. 26 transactions between Rs 2 lakh to Rs 5 lakh and for transactions above Rs 5, it charges Rs 52.
SBI charges for a transaction between 3:30 PM to 4:30 PM is Rs. 31 for a transaction between Rs 2 lakh to Rs 5 lakh. Above Rs 5 lakh is Rs. 56.
Immediate Payment Service (IMPS)
Even on Sundays and holidays, IMPS is available 24 hours a day, seven days a week. It is a perfect banking network in case of an emergency because it transfers funds instantly. The regular IMPS fund transfer cap is Rs. 2 lakh. In IMPS, the minimum transaction value is Rupee 1. If transfers are made using a mobile number and MMID, the maximum limit is only Rs 10,000. The IMPS fund transfer is managed by the National Payments Corporation of India (NPCI). Individual banks set their own fees for remittances through IMPS. Please check with your financial institution.
HDFC Bank Charges: 1) Above Rs.1 to Rs 1 Lakh - Rs.5 + GST
2) Above 1 lakh to 2 Lakh - Rs.15 + GST. GST is 18%.
Unified Payments Interface (UPI)
UPI is a mobile-based instant real-time payment system for transferring funds between bank accounts. UPI enables bank account holders from different banks to send and receive money using only their Aadhaar unique identification number, mobile phone number, or virtual payment address, without having to enter bank account details.
Popular UPI apps are
NEFT, RTGS, IMPS, UPI: What is the Best Way to Send Money?
For instant fund transfers of less than Rs. 1 lakh, UPI is the best payment system. Pay transfers are free of charge.
IMPS is another excellent payment mechanism for transferring funds in amounts greater than Rs. 1 lakh but less than Rs. 2 lakh.
NEFT is also the fastest way to send money through a bank branch. It is ideal for future payments, loan repayment, or credit card payments. RTGS is ideal for the transfer of Rs 2 lakh and more.