There are a number of ways to transfer money from one bank account to another. Technology has made it easier than ever. Online money transfer has become the hasslefree way of transferring money from one bank to another.
There are three primary ways of transferring money:
1. NEFT (National Electronic Fund Transfer)
The NEFT is the simplest and most liked form of money transfer from one bank to another.
To make any NEFT transaction, just two important pieces of information are needed — 1)account number and 2)the IFSC Code of the destination account.
Although there is no cap on the amount of money that can be transferred in NEFT, individual banks may set a limit.
How to do a NEFT money transfer?
1. Go to the Fund Transfer tab, and select ‘Transfer to other bank’ (NEFT).
2. Select the recipient account and enter the relevant details.
3. Accept the (Terms and Conditions).
4. Recheck the details and if all are correct,complete the process.
2. RTGS (Real Time Gross Settlement
A Real Time Gross Settlement or RTGS is similar to NEFT except that it has a minimum payment limit and it credits to the destination account differently.
It is used for large value interbank fund transfers. There is no upper cap on the amount.
Money transfer in an RTGS happens on a real-time basis. The bank of the person to whom the money is transferred gets it credited in 30 minutes to his/her account.
How to use RTGS for funds transfer?
1. Go to the Fund Transfer tab, and select ‘Transfer to other bank’ (RTGS).
2. Select the recipient account and enter the relevant details.
3. Accept the (Terms and Conditions).
4. Recheck the details, if all are correct, then confirm and complete the process.
3. IMPS (Immediate Payment Service)
IMPs is an instant fund transfer service and it can be used anytime. It can be simply defined as NEFT+RTGS.
The cap on transaction limits is set very low in order to avoid fraud complaints. For IMPS transfer, all you need is just the destination account holder’s IMPS id (MMID) and his/her mobile number.
You can make an IMPS money transfer in the following manner:
1. Using your Customer ID and Password into Net Banking/Mobile Banking.
2. Go to Funds Transfer tab (Other Bank Account).
3. Select Debit / Credit Account, mode of transfer as IMPS and beneficiary account.
4. Enter the amount to be transferred and click on Submit.
5. Click on the confirm button.
6. Recheck all the information and approve the transaction using OTP (one time password) received on your registered mobile number
7. Confirm by clicking on the submit button.
Through IMPS, money can be transferred 24/7 whereas RTGS & NEFT can be done only in working hours on weekdays + a few hours on Saturdays only. Other than NEFT, RTGS and IMPS, transfer of money can be done through UPI and cheque.
4. UPI (Unified Payments Interface):
A Unified Payments Interface is a real-time payment system that allows transactions to be done through any smartphone using VPA (Virtual Payment Address).
Since only a mobile number or name is sufficient and the transactions can be done 24/7, no bank account detail is needed for the money transfer.UPI-enabled apps allow the transfers up to Rs 1 lakh.
5. Cheque:
Money can be transferred from one account to another account by cheque. You have to simply draw a cheque stating payee as your name along with the account number wherein you want to transfer the amount along with your signature.
It’s done immediately at a branch if the transfer is within your bank.
Though there are restrictions if you want to withdraw a certain amount,there is no limit while transferring money from your a/c to another bank a/c.
Through a cheque, an amount more than Rs 50,000 can not be withdrawn from a non-home branch.
Bhoi Smrutirekha Dharanidhar