The Digital revolution has made our lives simple in terms of making payments. 10 years ago, to even make a single payment, you need to go to a particular place, and then you will confirm the payment. Indian Banking system has improved a lot in terms of technology.
Online money transfer solved one of the major problems is transferring money from one bank to another with a single click. Traditional banking systems were always time-consuming and required visiting the bank.
This article talks about what is online money transfer, the types of online money transfers, and important details to be provided when doing online money transfers.
Online Money Transfer
Online money transfer is the transferring of money from one bank account to another bank account using online. Nowadays, most of us rely on online money transfers. Even direct deposit payroll works on the basis of employee salary credit. Even employees’ salaries can be credited directly to the bank account.
Online money transfer is the modern-day technology that makes easy online payments directly to your bank account with just a single click. With the help of online money transfer, you can pay your bills, and debit your money to a particular bank account.
4 Ways to Transfer Money Online
NEFT is a one-to-one payment facility system where transactions take place between the banks that offer NEFT-related services.
NEFT means National Electronic Fund Transfer. It commenced its operations in 2005. This system was introduced by the Reserve Bank of India(RBI). The advantages of using NEFT are no processing fee and a maximum amount limit.
The disadvantages of using NEFT are a batch-wise clearing mechanism system and 23 half-hourly settlement cycles. NEFT has been operating around 1,15,000 branches all over India.NEFT working times are 9:00 am to 7:00 pm (weekdays) and 9:00 am to 1:00 pm (weekends).
IMPS means Immediate Payment System. IMPS becomes a new concept in India. Most Indian banks are allowed through mobile banking and net banking apps. The maximum amount limit is Rs1,00,000 per day. It works 24*7 all the time.
The major disadvantage of IMPS is a service tax for each transaction. NPCI (National Payments Corporation of India) through NFS switch. It can be used even on public and national holidays. There is no limited time period for money transactions.
RTGS is called the Real Time Gross Settlement system in India. One of the important reasons RTGS in effect is because huge amounts of money can transfer easily. There is no maximum limit for money transactions. The minimum amount for transaction is Rs 2lakhs. Implementation of RTGS becomes a hassle-free payment system for a large amount of money.
Within India, there is no extra charge. For foreign transactions, you need to pay Rs 25 when you transfer money between Rs 2 lakhs and Rs 5 lakhs. When money is above Rs5 lakhs for a transaction, you need to pay Rs 50 (extra charge).
Unified Payments Interface
Unified Payments Interface is a real-time payment system founded by NPCI (National Payments Corporation of India). The main purpose of UPI payments is to facilitate and merge more bank accounts into a single mobile payment app.
Nowadays, UPI has begun its operations on 11th April 2016. UPI facilitates inter-bank payments between peer-to-peer (p2p) and person-to-merchant (p2m) transactions. The major advantages of UPI are time-saving and the fastest and easiest mode of money transaction.
You don’t need ATMs, debit cards, or credit cards for money transactions. You just need a mobile app using a QR code, phone number, bank details like IFSC Code, and contacts. As of September 2022, there are 358 banks available on the UPI payments platform with a volume of 6.7 billion transactions amounting to Rs 11.7 lakh crore.
Important Details to be provided for Money Transaction
Before making any kind of money transaction, provide some bank details:
- Total amount
- Bank account number
- Remitter bank name and branch
- Remitter bank account number
- Remitter IFSC code
- Remitter name
In recent days, UPI payment and banking mobile application payments allowed by RBI have become major use and simplified payment system. So, online money transfer has become the fastest and easiest payment. It becomes more time-saving.
People stood in queues in the bank to make payments. It took 2 to 3 hours to settle a payment to another bank account. When it comes to advanced banking systems, the payment and settlement system becomes easier and hassle-free. Even UPI transactions will become an international payment system in the future. Even so, it is processing.