How to Transfer Money Online: NEFT, RTGS, and IMPS Explained
Introduction: In today’s digital age, transferring money online has become a necessity. Whether you’re sending money to a friend or making payments for business, three key methods are available in India for seamless online fund transfers: NEFT (National Electronic Funds Transfer), RTGS (Real Time Gross Settlement), and IMPS (Immediate Payment Service). Each method has its own unique features and is suited to different needs. In this article, we will explore how these methods work, their advantages, and when to use them.
1. NEFT: National Electronic Funds Transfer |
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| Launched in 2005, NEFT enables easy transfer of funds between different banks across India. Most major banks offer this service, making it accessible to almost everyone. The key aspects of NEFT include: | |||
Transfer Timing |
NEFT transactions are processed in hourly batches between 8:00 AM to 6:30 PM on weekdays. Transactions initiated after this time are processed the next working day. | ||
Amount Limits |
There is no minimum transfer limit, allowing you to send even small amounts like ₹1 or ₹2. However, banks often cap the maximum transfer amount between ₹10 lakhs to ₹25 lakhs. | ||
Charges |
NEFT charges vary by bank but are generally minimal. For instance, Axis Bank and ICICI Bank charge between ₹2.50 to ₹25 per transaction, excluding GST. | ||
When to Use NEFT |
NEFT is ideal for non-urgent transfers during working hours, especially for transferring medium to large sums of money across different banks. | ||
2. RTGS: Real Time Gross Settlement |
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| RTGS is designed for transferring large amounts instantly. As the name suggests, the transfer occurs in real-time, making it the fastest way to send substantial amounts of money. | |||
Transfer Timing |
RTGS transactions can be made between 8:00 AM and 4:00 PM on weekdays. | ||
Amount Limits |
The minimum transfer limit is ₹2 lakhs, making RTGS suitable for high-value transfers. The maximum limit varies by bank, but typically it’s up to ₹25 lakhs. | ||
Charges |
Like NEFT, RTGS charges differ across banks. For instance, HDFC Bank may charge ₹25 to ₹50 per transaction, depending on the amount, plus GST. | ||
When to Use RTGS |
RTGS is the best option when you need to transfer amounts above ₹2 lakhs quickly and securely. It’s commonly used for business transactions or large personal payments. | ||
3. IMPS: Immediate Payment Service |
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| For those who need to transfer smaller amounts instantly, IMPS is the perfect solution. Available 24/7, IMPS offers real-time transfer of funds, even on weekends and holidays. | |||
Transfer Timing |
Unlike NEFT and RTGS, IMPS operates around the clock, ensuring fund transfers can be made anytime, even during non-banking hours. | ||
Amount Limits |
You can transfer as little as ₹1, with a maximum limit of ₹2 lakhs per day. | ||
Charges |
IMPS is highly affordable, with some banks charging as little as ₹5 per transaction. In some cases, transactions below ₹1,000 may even be free. | ||
When to Use IMPS |
IMPS is perfect for sending small amounts instantly, whether for personal or business reasons. It’s particularly useful when you need to send money outside regular banking hours. | ||
How to Initiate Fund Transfers |
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| Regardless of the method you choose, the process of transferring money online is straightforward: | |||
Beneficiary Registration |
Before making a transfer, you must register the recipient’s details, including their account number, beneficiary name, and IFSC code (for NEFT/RTGS). | ||
Transaction Channels |
You can initiate the transfer via internet banking, mobile banking, or by visiting your bank’s branch. | ||
Special Features |
IMPS provides additional flexibility by allowing transfers using the recipient’s mobile number and MMID (Mobile Money Identifier) or even their Aadhaar number, provided the account is linked. | ||
Conclusion
Whether you need to send a small sum instantly or make a large transfer during business hours, NEFT, RTGS, and IMPS provide the flexibility to meet your needs. NEFT is best for non-urgent transfers, RTGS is ideal for high-value transactions, and IMPS is the go-to for instant transfers at any time.
Final Tip: Always check the charges and limits imposed by your bank before making a transfer to avoid any surprises. Now that you know how these services work, you can choose the one that best suits your requirements for a smooth and efficient money transfer experience.
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