Being cashless is one of the biggest agendas of the Indian government. This does not mean staying without cash, its intent is to boost digital transactions. Post demonetisation, surely India has seen a tremendous shift in digital transactions. There are host of electronic transactions like NEFT, RTGS, IMPS, mobile banking and point of sale (PoS). Interestingly, many lenders have been encouraging customers to adopt internet banking. This means anywhere in the world, a customer can send and receive money by just few clicks on their internet banking account. This eliminates the need to visit bank branches at quite an extent.

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If you are receiving and sending money, there are a few ways of doing internet banking. These ways are none other than NEFT, RTGS and IMPS.

Carrying NEFT, IMPS and RTGS transactions becomes quite easy once you have added beneficiaries in your account. Within seconds money is transferred. However, for adding beneficiary, which means another person’s account, an individual has to wait for a span of 30 minutes before they are fully allowed to out carry transactions on multiple basis.

But did you know, the money you transfer via NEFT, RTGS and IMPS has a whole list of new charges attached to them. Simply put, even for carrying out these transactions, you pay extra charges to your bank. Yes, it is quite frustrating but sadly very true. Some of us are not even aware of these charges, and every now and then your account balance gets deducted by a small fraction after carrying NEFT, RTGS and IMPS transactions.

What is NEFT, RTGS and IMPS?

NEFT

This is an electronic fund transfer system, which settles transaction in batches. It operates on a Deferred Net Settlement (DNS). Currently, a bank allows a customer to make about 11 settlements via NEFT between Monday and Saturday. It needs to be noted that, a person will be able to carry NEFT only between 8 am to 6.30 pm between these days, however, will not be able to do so during 2nd and 4th Saturdays as it is bank holidays.

Hence, if you make a transaction via NEFT after the specified time period, then that settlement batch will be carried in next settlement batches.

As on September 2018, about 181.01 million transactions were carried via NEFT in volume terms which were worth Rs 18,015.50 billion, RBI data showed.

RTGS

Unlike NEFT, the RTGS transactions are settled individually and not in batches. This means, a transaction in RTGS is processed immediately. However, in comparison to NEFT, the RTGS window is operation only between 8 am to 4pm during bank hours of Monday to Saturday. It is also not operational during 2nd and 4th Saturday.

RTGS is meant for heavy transfer, and a minimum limit on funds is set at Rs 2 lakh.

RBI data showed that, RTGS transactions stood at 10.40 million in volume terms aggregating up to Rs 131,257.97 billion as on September 2018.

IMPS

The best compared to NEFT and RTGS is Immediate Payment Service (IMPS) is a facility that is opened 24X7 for anyone holding a bank account.

When a fund transfer is initiated by a person using IMPS, the initiator bank sends a message to IMPS, which debits the money and sends it to the receiving account.

All this procedure happens within 5 – 10 seconds. However, maximum amount that a person can send through this portal is up to Rs 2 lakh in a day.

IMPS transactions were at 135.74 million in volume terms valuing up to Rs 1,256.40 billion as on September 2018.

Charges levied by SBI, HDFC Bank and ICICI Bank?

SBI

In NEFT, SBI has no charges for transactions up to Rs 10,000, however, the moment a transaction is above Rs 10,000 but up to Rs 1 lakh - the bank charges you with Rs 2.50 per transaction.

Above Rs 1 lakh to Rs 2 lakh, SBI levies Rs 5 on the transactions. Further, above  Rs 2 lakh transaction the bank charges you Rs 25.

Interestingly, SBI has varies of charges on RTGS transactions depending upon the time period it has been made. For instance, SBI levies Rs 25 for RTGS transactions between Rs 2 lakh to Rs 5 lakh carried between 0900 hours to 1200 hours of working days. SBI’s charges Rs 51 on above Rs 5 lakh transactions during the same hour.

After 1200 hours to 1530 hours of the day, SBI’s charges are Rs 26 and Rs 52 on RTGS transactions between Rs 2 lakh to Rs 5 lakh and above Rs 5 lakh. Lastly, after 1530 hours to 1630 hours on week days, any RTGS transactions between Rs 2 lakh to Rs 5 lakh, SBI will charge you with Rs 31, whereas Rs 56 is levied on transactions above Rs 5 lakh.

It will be advisable to carry RTGS transaction at SBI, before 1200 hours of a week days.

In case of an IMPS, SBI charges Rs 1 plus GST  on transactions between Rs 1,001 to Rs 10,000, whereas Rs 2 plus GST is applicable on transactions between Rs 10,001 to Rs 1 lakh and lastly a Rs 3 plus GST is charged on transactions between Rs 1 lakh to Rs 2 lakh. There are no charges on IMPS transaction carried below Rs 1,000.

HDFC Bank

Just like SBI, HDFC Bank also levies Rs 2.50 charge on NEFT made up to Rs 10,000, however, the charges plus with GST. Meanwhile, HDFC Bank levies Rs 5 plus GST on NEFT above Rs 10,000 but up till Rs 1 lakh.

Rs 15 plus GST is levied on NEFT above Rs 1 lakh but  up to Rs 2 lakh, and there is Rs 25 plus GST on NEFT made above Rs 2 lakh.

As for RTGS, HDFC Bank charges Rs 25 plus GST on transaction made between Rs 2 lakh till Rs 5 lakh. Apart from this Rs 50 plus GST is charged on transaction above Rs 5 lakh. At HDFC Bank, RTGS via online can be made Monday to Saturday (Except 2nd and 4th Saturday and bank holidays) - 8:00 AM to 4:00PM.

Coming to IMPS, HDFC Bank levies Rs 5 plus GST on above Rs 1 to maximum Rs 1 lakh, and a Rs 15 plus GST is charged on transactions above Rs 1 lakh to Rs 2 lakh.

ICICI Bank

This private lender’s charges on NEFT and RTGS charges are similar like HDFC Bank.

However, in case of IMPS, ICICI Bank charges Rs 5 plus GST each on transactions made up to Rs 10,000  and above Rs 10,000 to Rs 1 lakh. A Rs 15 plus GST is levied on IMPS transaction made above Rs 1 lakh to Rs 2 lakh.

Hence, it is very important to know the limit of transactions, bank working hours and the charges while carrying out a NEFT, RTGS and IMPS transactions. Remember the above mentioned charges if you do not want to pay extra cash. Especially SBI customers should make a note of RTGS users must take into note the specified time period of carrying a transaction, and can avoid the extra amount.

From the above, it can be said that largest lender SBI's charges on NEFT, RTGS and IMPS are more complex than HDFC Bank and ICICI Bank.