The methods by which people can send money online and open savings account have evolved. The National Electronic Fund Send (NEFT), Real Time Gross Settlement (RTGS), and Immediate Payment Services (IMPS), among other methods, are some of the ways that one can transfer money online.
India uses various online services, including UPI, digital wallets, digital savings account, etc. However, the popular money transfer methods they use are NEFT, RTGS, and IMPS. These payment options give account holders flexibility. The beneficiary’s basic bank account information must be known to use any of these services. The three payment transfer techniques utilized in India are compared in the table below:
NEFT ( National Electronic Fund Transfer)
You can send any amount via NEFT one-to-one to the recipient’s account. Money that can be sent in a single day through NEFT transactions is not capped. The NEFT system is accessible throughout the year, every day. In the time windows spread throughout the day, funds are transmitted in batches and settled.
The quantity of money that can be sent through NEFT is not constrained by a maximum or minimum amount. You can start transactions to send money from one bank account to another throughout India using NEFT. NEFT must, however, be accessible to the banks (or the banks should be NEFT-enabled).
All you have to do to send money with NEFT is sign in to your net banking login or your bank’s online banking app and add the recipient as a beneficiary. Their name, account number, account type, and IFSC code must all be entered in the appropriate section. The funds will be transmitted once you select NEFT as your chosen transfer method and input the appropriate amount.
RTGS (Real-time Gross Settlement)
Real-Time Gross Settlement, sometimes known as RTGS, was introduced by the RBI in 2004. Continuous real-time financial transfers are made possible by real-time, which refers to processing instructions as soon as the bank gets them. The gross settlement, on the other hand, refers to managing fund transfer requests on an instruction-by-instruction basis.
Corporate entities and institutions mostly employ this technique for real-time fund transfers. With this system, different banks may have different maximum transfer amounts. For RTGS transactions, the RBI has not imposed an upper limit. RTGS transactions started via online methods are not subject to transaction fees (i.e., internet banking and mobile apps). Certain banks do impose fees for transactions started through bank branches, nevertheless.
IMPS (Immediate Payment Service)
IMPS is utilized for real-time financial transfers using the bank’s internet channels, including mobile, net, SMS, and ATM banking. The National Payments Corporation of India (NPCI) assists in making fund transfers between member banks possible under this fund transfer mechanism. Instantaneously, funds are transferred between two bank accounts. The initiating party needs the beneficiary bank account number and IFSC code to start and finish the transaction.
The IMPS mechanism allows year-round transmission of the amount. The majority of retail clients use this system for small-value transactions.