While there had been a number of transactions this year at almost the value of Rs 4.70 trillion through mobile banking in India, Internet banking has indeed taken a contrary turn since a decade when people were almost unaware of this preceding technology. The bulk of these transactions has been fund transfers while many people plainly cannot differentiate between the three concrete modes of Internet banking fund transfers.
These three major ways include National Electronic Fund Transfer (NEFT), Real Time Gross Settlement (RTGS) and the Immediate Payment Service (IMPS). Now here is the brief instruction on how to use all three of them in an efficient way:-
National Electronic Fund Transfer (NEFT)
This mode of payment is majorly used by companies,
individuals and firms to transfer funds from an account in any branch of the
bank to whichever individual, firm or company they wish to. It can be
transferred to any branch of any bank having the NEFT facility.
Individuals who don’t have any bank account can simply deposit cast at NEFT-enabled branches to transfer funds using the NEFT system. However, cash payment through NEFT is restricted to a maximum of Rs 50,000 per transaction. Also, to transcribe NEFT in cash, one needs brief details such as complete address and the telephone number.
There is no defined charge to be paid by the receivers of NEFT transaction, but those who may have to pay a specified amount as the NEFT fee. Like, for transactions up to Rs 10,000 banks charge around Rs 2.25 while for transactions above Rs 10,000 to Rs 1 lakh, the charge is Rs 4.75. Also, for transactions between Rs 1 lakh and Rs 2 lakh, up to ₹14.75 is charged by banks and for transactions above Rs 2 lakh, up to Rs 24.75.
These charges include GST and these are maximum rates solely fixed by the Reserve Bank of India. It is important to note that the NEFT transactions get credited to the beneficiaries account within two business hours and if this rule is not mandated then the banks are liable to pay the amount with penal interest at the present RBI liquidity adjustment facility (LAF) plus 2% of the period of delay/ till the date of refund to the customer’s account.
Real-Time Gross Settlement (RTGS)
This low-value transaction does not extend its hands to customers who wish to make big transactions. However, the minimum amount set to transfer through the RTGS mode is Rs 2 lakh and the maximum limit is unspecified. This system processes transactions in real-time therefore it makes instant transfers. This system is available only during the working days and working hours though.
The transfer through RTGS mode can be initiated both through Internet and mobile banking and by visiting the nearby branch. The transaction charges underlined by the RBI for those who may range from Rs 2 lakh to Rs 5 lakh has been set to pay around Rs24.50 and Rs 49.50 has to be paid for transferring amounts exceeding Rs 5 lakh which is inclusive of GST.
Immediate Payment Service (IMPS)
Another most reliable real-time payment mode which is
especially available round the clock even during holidays is offered by
National Payment Corp. of India. This mode of fund transfer allows the users to
transfer money instantly through banks and Prepaid Payments Instructions (PPIs)
that are authorized by RBI all over the country. The IMPS transfer service too
can be initiated from mobiles, internet or ATM. The charges of remittance is
decided individually by the banks and PPIs.