A few years back, we used to visit banks for electronic fund transfers, but now there is no need to visit banks. The use of technology and the Internet has greatly increased, and online money transfers have become the easiest. All banks provide Internet banking, mobile banking and UPI facilities. You have to activate it, and you will get various money transfer options.
Several types of money transfer options are available, like NEFT, RTGS, IMPS, UPI and more. By using these options, you can easily transfer money to another bank through mobile or laptop. However, the Unified Payment Interface (UPI) is the fastest and easiest way for users.
But, there are many options for transferring funds to banks other than UPI. So, if you want to know the types of money transfers, then this article will cover your query.
Types of Money Transfers in Bank
These are by far the most used money transfer options in India. Users can transfer funds online as well as offline in 5 ways.
- NEFT (National Electronic Fund Transfer)
- RTGS ( Real-Time Gross Settlement)
- IMPS ( Immediate Payment Service)
- UPI ( Unified Payments Interface)
- Cheque ( by hand or courier)
Banks provide full rights to customers through net banking, customers can use NEFT, RTGS, IMPS and UPI for fund transfers to another bank. Following are the steps to transfer funds through the NEFT, RTGS, IMPS and UPI.
1: NEFT Transfer
The NEFT (National Electronic Fund Transfer) is the most used form for transferring money from one bank to another. To complete any NEFT transaction, you need to enter the account number, IFSC Code and amount of the destination account. Here, you can also add beneficiaries for instant transfer. There is no limit on the amount that can be transferred in NEFT, but you can set a limit.
Steps to Transfer Money Using NEFT
Log in with your internet banking credentials:
Step 1: Select the Fund Transfer Tab, and click on the ‘Transfer to Other Bank‘ (NEFT).
Step 2: Enter the recipient’s account details and amount.
Step 3: Accept the Terms & Conditions and click on Submit.
Step 4: Preview the details and Confirm to complete the process.
2: RTGS Transfer
RTGS is a real-time transfer which is almost similar to NEFT. It takes to 30 minutes or less to credit the destination account. This is the best option if you want to transfer to more than one account. There is no upper limit for RTGS, but the minimum payment and deposit methods are different here.
Steps to Transfer Funds Using RTGS
- Select the Fund Transfer tab and click on the ‘Transfer to Other Bank’ (RTGS).
- Enter the recipient’s account number and other relevant details.
- SelectTerms and Conditions.
- Review the details, and click on confirm to complete the process.
3: IMPS Transfer
Immediate Payment Service (IMPS) is an instant fund transfer service and you can use it 24/7 basis. The IMPS transaction limit has been set very low to avoid fraud complaints. The maximum transfer limit is Rs 25,000/- per day. For IMPS transfer, you need to know the MMID or IMPS ID of the destination account holder and their mobile number.
Steps to Transfer Money Using IMPS
Step 1: Log in with your Customer ID and Password in Net Banking or Mobile Banking.
Step 2: Select the Funds Transfer tab (Other Bank Account) option.
Step 3: Select the debited account, beneficiary account or mobile number, and name and enter the amount.
Step 4: Select the Terms & Conditions and click on Continue.
Step 5: Review the details and click on Confirm.
4: UPI Transfer
UPI (Unified Payments Interface) is a digital payment system where a customer can send and receive money through a virtual payment address (UPI ID). In the UPI app, virtual payment addresses are automatically created; there is no need to create a customer, even if the customer can create a new virtual address (UPI ID) at any time.
Apart from this, many options are available for money transfers like QR codes, mobile numbers, bank accounts, etc. You have to choose any one of them, that’s all.
5: Cheque Transfer
It is used by most companies, and it is also the process of transferring or receiving money from one account to another. This is a very old money transfer process which is still widely used today. All you need is a chequebook, the recipient’s name or account number and the amount to be entered. Here, your signature is essential on the chequebook.
There is no limit if you want to transfer money from your account to another bank account, but there are some restrictions if you wish to withdraw a certain amount. A certain amount differs from bank to bank and may change over time. The cheque can be transferred through the courier service or by hand.
NOTE: IMPS support a 24/7 format for money transfer, whereas RTGS and NEFT happen only during working hours on weekdays. Apart from this, you can also transfer your money through UPI, check and by hand. But, by hand is permitted
Fastest Money Transfer
The Unified Payments Interface (UPI) is the fastest and easiest method to transfer funds to another bank. The list of UPI apps that are best for fund transfer which is very popular in India, is given below.
- Google Pay
- SBI Pay
- Samsung Pay
- Uber India
- Axis Pay
- YONO SBI
- BHIM SBI Pay
Most UPI apps proved to be a boon for customers, easy to use, 100% secure and instant money transfer. No need to enter a user id password here; enter a UPI PIN and transfer. Apart from this, customers can pay their utility bills, mobile recharge, credit card bills etc.
What is Internet Banking?
Internet banking is one of the most prominent revolutionary innovations in banks, where customers are given the freedom to do all the work on their bank accounts. In earlier times, customers visited the bank branch and queued for hours to complete bank-related work. Now, customers do the same thing in a pinch at home or on the road.
It provides customers with security and privacy using end-to-end encryption and security technologies. Whether online banking, mobile banking, SMS banking, UPI or phone call banking, every type of financial transaction is part of Internet banking
It provides well-organized cash management for international banking as well as Internet optimization. Through internet banking customers can do many things such as deposits, withdrawals, inquiries, inter-account cash transfers, and PIN changes. Bill payment, can get a loan, can shopping, travel etc.
What is EFT?
Electronic fund transfer means that computer systems are used to conduct financial transactions electronically. EFT is used for electronic payments and customer-initiated transactions, where the cardholder uses a credit or debit card.
What is Mobile Banking?
Every bank provides mobile banking facilities to its customers. You need to install it on your mobile and you will get all online banking facilities. Mobile banking allows customers of various fund transfer options from one bank to another bank.
These are the six types of money transfers in India, but UPI is the fastest and easiest money transfer method for every user. Every action is done immediately; you need to add your bank account. So here all those banking facilities are available, such as instant fund transfer, mobile recharge, self-account money transfer, other account money transfer, check bank balance, utility bill etc.