To promote Digital India, in today’s date, everyone in India is making digital payment. Be it transferring funds from one bank account to another or making any kind of payment, digital payments have made everyone’s life easier.
To promote Digital India, in today’s date, everyone in India is making digital payment. Be it transferring funds from one bank account to another or making any kind of payment, digital payments have made everyone’s life easier. Earlier people had to go to the bank and complete the process of transferring funds. But now everything has become very easy through digital payment. Most of the banks, private companies and government departments in India have adopted digital payment service. Through which online fund transfer is also done very easily and it is also easy to keep all kinds of records.
In such a situation, at the time of doing online transaction in our mind, this question definitely comes in our mind that through which process it will be right to do online payment or transaction? Also, when money is to be transferred then why only three-four process? Especially those who are small town traders, they have to do transactions for daily work. In such a situation, they get the most confusion. So know what is NEFT, RTGS, IMPS and what is the difference between them?
What is NEFT, RTGS and IMPS?
By the way, many mediums of making digital payment in India are present in today’s date. The most used are digital wallets (PhonePe, G Pay, Paytm) and UPI. But the medium most used digitally is:
1.NEFT (National Electronic Funds Transfer): Money transfers through NEFT are not always done simultaneously but in batches.
2.RTGS (Real Time Gross Settlement): Fund transfer is always done as per instructions and on instructions basis.
3. IMPS (Immediate Mobile Payment Service): Considered to be the easiest fund transfer process, funds are transferred anytime, anywhere and instantly through IMPS. However, it works just like RTGS. But for the convenience of all the online bank account holders and in case of bank closure, the facility of IMPS has been started for quick fund transfer.
What is the difference between NEFT, RTGS and IMPS?
1. NEFT: Through National Electronic Fund Transfer, money is transferred from one bank account to another bank account through batches. Funds are not transferred instantly through NEFT. Fund transfer batches for NEFT are released every half an hour. Through this process, all the people who transfer funds within that half hour, their money is sent from one bank to another. The process of each transaction is completed in half an hour. Now you can use NEFT round the clock after the order given by RBI.
Gaurav Aggarwal, Senior Director, Paisabazaar.com says that- “Internet bank fund transfer process such as NEFT, RTGS, IMPS and UPI have different limits depending on the minimum and maximum transfer amount. Similarly, the turnaround time is also different for different payment systems. For example, fund transfer through UPI and IMPS is done instantly, whereas fund transfer through NEFT and RTGS takes some time.
2.RTGS: Instant fund transfer is done through Real Time Gross Settlement i.e. in real time. The facility of payment or fund transfer was ordered by RBI now 24 hours and 7 days a week which has been started by banks and is running smoothly. Real time means to start the process of sending money in real time immediately through which customers can transfer funds quickly.
3.IMPS: By the name of Immediate Mobile Payment Service, we can understand that the process of transferring funds through which money is transferred immediately. Managed by National Payment Corporation of India. Funding is done through IMPS 24*7 throughout the year.
According to Adil Shetty, CEO, BankBazaar, there are some charges for all types of fund transfers. According to the RBI, it depends on the banks how much they charge for different fund transfers. How quickly the money will be transferred depends on the medium of fund transfer. However, NEFT, IMPS is available 24*7. But, the RTGS system depends on the working hours of the banks.
How much funds can be transferred through NEFT, RTGS and IMPS?
How much is the fee charged through NEFT, RTGS and IMPS?
Talking about the fee, there is a minimum fee of Rs 2.5 and a maximum of Rs 25 for fund transfer through IMPS. Apart from this, GST also has to be paid. Explain that IMPS charges are under the policy of the bank and any bank can waive or charge the fee. At the same time, internet banking charges for NEFT range from Rs 1 to Rs 5 plus GST.
For RTGS, Rs 5 to Rs 10 plus GST is charged by the bank on transactions between Rs 2 lakh and more than Rs 5 lakh.
Gaurav of Paisabazaar says- ‘Fund transfer has to be done with a fee. The bank will decide how much will be charged for fund transfer according to the rules of RBI. The fee depends on the transfer amount, transfer speed etc.’.
However, the RBI had ordered banks in 2019 itself to stop charging customers or charge nominal charges, so that customers do not have to pay more amount as charges. At the time of transferring funds, which method is right for us or not, it depends on our need. Therefore, always before any kind of fund transfer, you should know and understand the purpose of sending your funds. Also, understand how much money to transfer and the fees associated with them, then transfer the funds.Live TV