Online Fund Transfer Process: Know difference between IMPS, NEFT and RTGS

Online Fund Transfer Process: Fund transfer in a bank refers to the process of transferring money from one bank account to another. Most banks offer online banking facilities that allow customers to transfer funds between their own accounts or to other accounts. Customers can initiate the transfer through the bank's website or mobile banking application.

IMPS, NEFT and RTGS are all electronic funds transfer systems in India, but they differ in terms of speed, transaction limits, and fees.

IMPS (Immediate Payment Service) is an instant payment system that enables customers to transfer funds in real-time, 24/7. The maximum transaction limit, in this case, is Rs 2 lakhs and there is usually a nominal fee charged by the bank. IMPS is the most convenient and fastest mode of payment and is ideal for small transactions.

NEFT (National Electronic Funds Transfer) is an electronic payment system used for transferring funds from one bank account to another. It operates on a deferred net settlement basis, which means transactions are processed in batches throughout the day. The minimum transaction amount is Rs 1, and the maximum transaction limit is Rs 10 lakhs. NEFT transactions are processed in hourly batches during working hours on weekdays and on Saturdays but not on Sundays and bank holidays. There are no charges for inward NEFT transactions, but some banks may charge for outward transactions.

RTGS (Real-Time Gross Settlement) is a payment system that enables large-value transactions to be processed in real-time. The minimum transaction amount is Rs 2 lakhs, and there is no upper limit on the transaction amount. RTGS transactions are processed in real time, and the funds are settled individually, meaning that the funds are transferred immediately without any delay. RTGS is typically used for high-value transactions and there is usually a fee charged by the bank.

While all three systems allow for electronic funds transfer, IMPS is the fastest and most convenient for small transactions. Similarly, NEFT is suitable for low-value transactions and RTGS is ideal for high-value transactions. The transaction limits and fees for each system also vary and it's essential to check with your bank for the latest information.

There are several ways to transfer funds within a bank:

Mobile Banking: Mobile banking allows customers to access banking services through their mobile devices. Customers can use the bank's mobile app to transfer funds between their accounts or to other accounts.

ATM: Automated Teller Machines (ATMs) can also be used to transfer funds between accounts within the same bank. Customers can use the bank's ATM card to transfer funds to other accounts by selecting the transfer option on the ATM.

Cheque: Customers can also transfer funds by writing a cheque to the account they want to transfer money. They can then deposit the cheque into the recipient's account.