Various ways one can transfer fund
There are several payment options to transfer money from one bank account to another. In some cases, there may be a necessity of sending the money with immediate effect. So, it is advisable to have an idea on different payment systems that are in existence. Some of them are NEFT, RTGS, IMPS, ATM and others. In this article, we seek to give you all the key information relating to these payment options.
Both National Electronic Fund Transfer (NEFT) and Real Time Gross Settlement (RTGS) are part of Electronic Clearance Service (ECS). Through these systems, money can be transferred from one account of a bank to another account in another bank. Money transfer can be done from both individual and company accounts in these systems. To transfer money, one has to enter Account Number, Account Holder Name, Bank Name, Branch Name, Branch Code and IFSC (Indian Financial System Code).
In this mode of money transfer, there are no restrictions on money transfer. The transactions starting from Re.1 can be done in this mode. However, the transaction is not completed immediately after the money is transferred. It takes some time and the money is transferred to the account of the beneficiary in batches. There are 11 batches between 9 am to 7 pm in a day. For example, if the money is transferred at 11.10 am, the transaction will be completed at 12 noon batch and so on. On Saturday, these batches are run between 9 am and 1 pm only. If the transaction is done after the time, the transaction will be completed in the first batch of the following day only.
In this mode of money transfer, the money is transferred to the other person immediately after the transaction is made. However, the minimum amount that can be transferred in this mode is Rs.2 lakhs and there is no upper limit. Only some banks have an upper limit. The money can be transferred from 9 am to 4.30 pm from Monday to Friday and 9 am to 1.30 pm on Saturday.
As per the guidelines of the Reserve Bank of India, only Rs.5 has to be collected on NEFT transactions till Rs.1 lakh. The amount is Rs.15 for the money transaction ranging from Rs.1 lakh to Rs.2 lakhs and it is Rs.25 for the money transactions of Rs.2 lakhs and above. Regarding RTGS transactions, an amount of Rs.25 is collected for the transactions between Rs.2 lakhs and Rs.5 lakhs and the amount is Rs.50 for the transactions above Rs. 5 lakhs. However, service charge will also be there in addition to the above charges.
If money is not credited...?
Sometimes, the transaction may fail if the account number is typed wrongly or when the account is not in existence. In those circumstances, the amount will be returned to the bank which made the transaction. Then, the bank will deposit the amount in the account of the customer.
Immediate Payment Service (IMPS)
This is one service in which the money can be transferred immediately through mobile phones. Money can be transferred at any time in a week. There is no possibility of transferring the money instantly round the clock under NEFT and RTGS. Keeping in mind this problem, IMPS has been started in the country. If any customer wants the facility, they have to apply fresh and get MMID and MPIN. Then, the customers have to download the app of the bank into their smartphone. If it is an ordinary phone, the service is through the SMS mode.
Both the sender and receiver of the money have to register themselves for using the facility. One can open IMPS app and give the necessary details there and then send the money. The transaction is completed by entering Mobile Number and MMID of the Beneficiary, amount and MPIN. There is no lower limit on transferring the amount. But, the upper limit varies from bank to bank. The service charge is Rs.2.50 if the amount is less than Rs.10,000. It is Rs.5 for the amount between Rs.10,000 and Rs.1 lakh and Rs.15 for the amount ranging from Rs.1 lakh to Rs.2 lakhs. Service charge will also be there on these transactions. State Bank of India allows its customers to send money to single IMPS beneficiary in a day.
Through ATMs, one can send money to a customer of any other bank or the same bank. However, Yes Bank, Union Bank of India, Canara Bank, Andhra Bank and few others are giving the facility at the moment. SBI and some other banks are giving the facility within their bank accounts only.
Making use of the facility is very simple. The 16 digit debit card number of the beneficiary is needed to send the money. For example, any customer of SBI can go to ATM center and select 'Transfer' option after swiping card in the machine. After entering the PIN, one has to select 'Card to Card' option. Then, debit card number of the beneficiary has to be entered. The transaction is completed after entering the amount and selecting the type of account like Savings or Current. Various banks are restricting the transaction to Rs.15,000 in a day. However, SBI allows two transactions in a day with each amounting to Rs.15,000.