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RTGS is meant for high-value transactions.
RTGS is meant for high-value transactions.

Three ways through which you can transfer money by mobile, internet banking

  • NEFT, RTGS and IMPS are the three methods by which one can transfer funds through mobile, internet banking
  • IMPS is a real-time payment service that is available round the clock, including on holidays

In September 2019, about 1.11 billion transactions, at a value of 4.70 trillion, were conducted through mobile banking in India. A bulk of these transactions involve transfer of funds. There are three methods through which you can transfer funds through mobile banking—National Electronic Funds Transfer (NEFT), Real Time Gross Settlement (RTGS) and Immediate Payment Service (IMPS). We tell you what these are and how you can transfer funds using them.

NEFT

This method can be used by individuals, firms and companies to electronically transfer funds from an account in any bank branch to any individual, firm or corporate having an account with any other bank branch in the country having the NEFT facility. Even individuals who do not have a bank account (walk-in customers) can deposit cash at NEFT-enabled branches with instructions to transfer funds using NEFT. Cash remittance under NEFT is restricted to a maximum of 50,000 per transaction. To initiate NEFT in cash, you need to furnish details such as your complete address and telephone number.

While there are no charges to be paid by those receiving the funds through NEFT, if you are transferring money, you may have to pay a fee. For transactions up to 10,000, banks may charge up to 2.25; for transactions above 10,000 to 1 lakh, up to 4.75; for transactions between 1 lakh and 2 lakh, up to 14.75; and for transactions above 2 lakh, up to 24.75. All charges exclude GST. These are maximum rates fixed by the Reserve Bank of India (RBI), but banks are free to charge anything up to the limits prescribed.

Typically, NEFT transactions get credited to the beneficiary’s account within two business hours. If the NEFT transaction is not credited or returned within the stipulated time, then banks are liable to pay penal interest at the current RBI liquidity adjustment facility (LAF) repo rate (the interest rate at which RBI lends to banks) plus 2% for the period of delay or till the date of refund to the affected customers’ account.

RTGS

This system is meant for high-value transactions. The minimum amount that you can transfer using RTGS is 2 lakh, and there is no upper limit. RTGS is a system where processing of instructions is done in real time, so the transfer is instant. However, RTGS service is available only on working days and during working hours.

Transferring money through RTGS can be initiated via mobile or Internet banking or by visiting a bank branch. The transaction charges have been capped by RBI. You need not pay any charges for receiving money through RTGS, but to transfer funds between 2 lakh and 5 lakh, you may need to pay up to 24.50, and 49.50 for transferring an amount above 5 lakh. The charges exclude GST.

IMPS

This is a real-time payment service that is available round the clock, including on holidays. This service is offered by National Payments Corp. of India that empowers customers to transfer money instantly through banks and RBI-authorized Prepaid Payment Instruments (PPIs) across India. Money transfer through IMPS can be initiated from mobiles, internet or even an ATM. The charges for remittance through IMPS are decided by individual banks and PPIs.

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