How to Transfer Money Online

The most commonly used method of transferring money online is NEFT. This is based on deferred settlement and is used to transfer funds from one bank account to another. Though there is no cap on the amount as per RBI (neither minimum nor maximum), individual banks may set their own limits. However, the maximum limit per transaction is Rs 50,000 for cash-based remittances within India and to Nepal under the Indo-Nepal Remittance Facility Scheme.

The transfer of funds is done in hourly batches. Currently, the number of settlements made between 8 am to 7 pm is 12 on weekdays and 6 settlements are made between 8am and 1pm on Saturdays. From 10^th July 2017, the RBI announced 11 additional settlement batches at half-hourly intervals starting from 8:30 am and ending at 6:30 pm. No settlement is done on second and fourth Saturdays of the month and on bank holidays.

How to send money online using NEFT?

Follow the steps given below to send money via NEFT. You should be registered for the internet banking services of your bank and your bank branch should be NEFT-enabled.

Step 1- Login to your bank’s net banking portal using your login ID and Password.

Step 2- Now you are required to add a beneficiary that would be the person to whose account you wish to send the money. To add a beneficiary, you need the person’s name as per his bank account, his account number and the IFS Code for his bank branch. Once you do this and submit, your bank will verify the details and add the beneficiary. This might take a few hours.

Step 3- Once a beneficiary is added, you can transfer the funds to his account.  Go to the ‘Transfer Funds’ section of your net banking portal and select the beneficiary. Enter the amount you wish to transfer and then submit.

Step 4- You will get a One-Time Password (OTP) on your registered mobile number. Enter the same to authenticate your fund transfer. Once verified, the amount will be credited to the person in the next batch scheduled.

RTGS is another form of electronic fund transfer in the country where the settlement is made on real-time basis. It is used for high-value transactions as the minimum amount is Rs 2 Lakh; there is no cap on the maximum amount. The main difference between NEFT and RTGS is related to the schedule. While the former transfers funds in batches, the latter does it on real-time basis. This means that in case of RTGS the beneficiary bank receives transfer notification immediately. Also, unlike NEFT, the transfers are not bundled together in batches instead they happen individually. Since the transactions are directly operated by the RBI, RTGS transfers are final and irrevocable.

How to send money online using RTGS?

Before sending money through RTGS, you must ensure that your bank branch is RTGS enabled. Also, you need to be registered for using the internet banking services of your bank. To transfer funds through RTGS, follow the steps given below-

Step 1- Login to the internet banking portal of your bank by entering the login/customer ID and password.

Step 2- You are now required to add beneficiary for which you will need the person’s name, bank account number and the IFS Code of his branch. Once you enter these details and submit, the beneficiary will be added in a few hours (the timing differs from bank to bank).

Step 3- Once the beneficiary is successfully added, you can transfer the funds using RTGS. Just go to the ‘Fund Transfer’ section of your net banking portal, select the beneficiary and enter the amount. Submit.

Step 4- Enter the OTP received on your registered mobile number to authenticate the transaction.

The amount will be credited to the beneficiary’s account on immediate basis.

IMPS was launched in the year 2010 by the National Payments Corporation of India (NPCI) after NEFT and RTGS became popular. The best and most important benefit of IMPS is that it is not time-bound. You can transfer funds through IMPS even after the bank’s working hours and on holidays. It is completely secure and in line with the government’s Digital India initiative. IMPS is easy to use and is gaining popularity in the country.

Just like for NEFT and RTGS, you should have enabled internet banking on your account in order to be able to initiate a money transfer through IMPS.

How to send money online using IMPS?

Follow the steps given below-

Step 1- Login to your bank’s internet banking website with your Customer ID and Password.

Step 2- Add beneficiary by entering his account number, name and IFS Code.

Step 3- After successful beneficiary addition, go to the ‘Fund Transfer’ section and click on IMPS. Select beneficiary and enter amount.

Step 4- Receive OTP on your registered mobile number and authenticate the transaction.

The amount will be credited to the beneficiary’s account in a matter of seconds.

Alternatively, you can make IMPS mobile transfer. For this, you need to know the beneficiary’s account number and MMID (Mobile Money Identifier). This is a 7-digit number provided by the bank if the receiver of the fund is using mobile banking. You do not need to register the beneficiary into your account in case of IMPS mobile transfer.

UPI is the latest addition to the ways of transferring funds electronically. This is a mobile-app based payments system and uses a Virtual Payment Address (VPA) to transfer funds from one account to another. The best takeaway of UPI is that you do not need to share your account details or any other personal information which makes it a lot more secure. Also, UPI transfers funds immediately.

How to send money online using UPI?

For sending money using UPI, you first need to register for it. Listed below are the steps you need to follow-

Step 1- Download the UPI-enabled mobile application of your bank. If you already have one in your phone but it is not UPI-enabled, you must update it.

Step 2- Login using your Customer ID/User ID and Password.

Step 3- Go to the UPI section on the app where you will be required to create a Virtual payment Address (VPA). For this you should select the account for which you want to generate the VPA and then create one. The VPA is in this format- abc@bankname.

Once you have created the VPA, you are ready to send and receive money via UPI.

In order to transfer money using UPI, this is what you need to do-

• Go to the UPI section of your UPI-enabled mobile application.
• Enter the receiver’s Virtual Payment Address.
• Select the account from which you want to send the money.
• Enter the amount to be transferred.
• On the confirmation screen, check the details and click ‘submit’ to send.

All the four methods given above have their own advantages and uses. The table below highlights some of the main features to help you compare-

	NEFT	RTGS	IMPS	UPI
Time Taken	Funds are transferred in batches, usually on the same day	Real-time transfer, usually within 30 minutes	Immediate	Immediate
Minimum Amount	No cap on minimum amount	Rs 2 Lakh	No cap on minimum amount	No cap on minimum amount
Maximum Amount	No cap on maximum amount	Rs 10 Lakh	Rs 2 Lakh per day	Rs 1 Lakh per day
Charges	For less than Rs 10,000- Rs 2.50 From 10,000- 1 Lakh- Rs 5 From 1 Lakh to 5 Lakh- Rs 15 For above 2 Lakh- Rs 25	From 2-5 Lakh- Up to Rs 30 For above Rs 5 Lakh- Up to Rs 55	For up to Rs 1 Lakh- Rs 5 For Rs 1-2 Lakh- Rs 15	Free
Beneficiary Registration	Required	Required	Required/ Not Required if using MMID	Not Required

Apart from these methods, the trend of mobile wallets and e-wallets has also revolutionized the way we transfer funds, nowadays. Though these wallets have a smaller limit, they are quite popular because of being convenient, user-friendly and free of cost. The transactions made through mobile wallets are safe and secure. However, this does not mean that NEFT and RTGS are old fashioned ways of sending money online. They are still preferred for transferring bigger amounts.