In India people made over 110 crore transaction in September 2019, the total value of those transaction was around Rs. 4,7 lakh crores just through mobile banking. Majority of these transactions involved transfer of funds. To transfer funds via mobile banking, one can use 3 methods, namely, IMPS (Immediate Payment Service), NEFT (National Electronic Funds Transfer), and RTGS (Real Time Gross Settlement). The article will cover how you can use them and what these methods are.
Immediate Payment Service was launched in 2010 and is used for inter-bank funds transfer. IMPS service is available 24 hours a day and 7 days a week (24X7), even on holidays. IMPS is developed by NCPI (National Payments Corporation of India). One can transfer a maximum amount of Rs. 2 lakhs through IMPS. One can use mobile banking or mobile app of the bank to avail this service. The charges varies from bank to bank. Apart from mobile, IMPS can be availed via internet banking and ATMs.
National Electronic Funds Transfer or more commonly known as NEFT is a system which is maintained by RBI wherein the funds are transferred electronically. The transfers can be made by an individual or a company to another individual or company holding account in another bank which is a member of RBI’s NEFT system, which all banks are.
If you are a walk in customer for the bank (not an account holder), you can still avail NEFT facility by depositing cash at NEFT windows, however not all branches provide this service, and the branches that do offer this service, one can transfer a maximum of Rs. 50,000 using this cash NEFT.
If you wish to avail the NEFT service, a bank can charge a maximum of Rs. 2.5 (+GST) for transactions amounting up to Rs. 10,000, Rs. 5 (+GST) for transactions between Rs. 10,000 and Rs. 1 lakhs, Rs. 15 (+GST) for transactions between Rs. 1 Lakhs and Rs. 2 lakhs, and for transaction over Rs. 2 lakhs a maximum of Rs. 25 (+GST) can be charged. These are the maximum charges a bank can charge according to RBI, the actual rates depends upon the time and the day of the transaction.
One can use the Mobile application of the Bank it holds account in, or log into through internet banking and use NEFT services to transfer funds.
Typically, funds transferred via NEFT gets reflected in the beneficiary’s account in under 3 business hours, but if due to any reason (no fault of sender, like typos) the amount is not credited, the bank is liable to pay the interest according to the RBI’s LAF (Liquidity Adjustment Facility) repo rate (the rate at which the RBI gives money to the banks) on top of 2% for the time frame of the delay of transfer or refund of the amount that were to be transferred.
Please note that from January 2020, banks cannot charge you for NEFT and RTGS services if you using a savings account to avail these services.
Read the article here: No NEFT and RTGS charges from January 2020 for saving account holders!
Real Time Gross Settlement or more commonly called is RTGS is used for transactions involving high funds. The minimum amount that is required to avail RTGS facility is Rs. 2 lakhs with no upper limit. As the term ‘Real Time’ tells us, the transactions made using RTGS are done instantly. One can use RTGS services from 8:00 am to 4:30 pm on weekdays and weekends that are working for the bank, though the timings can change for the days according to banks load and operating hours.
Like NEFT, one can use the bank’s mobile app or internet banking service to transfer funds via RTGS, if one cannot visit the branch because of any reason.
Like NEFT, the bank is qualified to charge for RTGS services, if someone avails RTGS service to transfer a sum between Rs. 2 lakhs to Rs. 5 lakhs, a bank can charge Rs. 30 at maximum and if the amount is over RS. 5 lakhs the maximum fee of Rs. 55 can be charged. These amounts are the maximum limit hence the actual fees depends upon the time and the day of the service. Bank are eligible to charge any amount from the customer but not exceeding the set limit.