Transferring money from one bank to another in India has never been easier and more convenient as it is with systems like IMPS, NEFT and RTGS. These systems are fast and several banks, government bodies and companies adopt these quicker methods of fund transfer with ease. The NEFT full form is the National Electronic Funds Transfer, and this system, along with RTGS (Real-Time Gross Settlement), was launched by the Reserve Bank of India. IMPS was introduced by the National Payments Corporation of India. Each of these have different features and purposes, but meet the end of transferring funds. To use these, you should know about them in a little more detail.
About Credit Card Payment Methods
Today, credit card holders prefer to make credit card payments online rather than offline. Most banking is undertaken online too, and credit card payments online are fast and convenient. Credit card payments are facilitated by electronic transfers that include NEFT, IMPS and RTGS. These entail online fund transfer instantly, and in the case of credit cards where due dates are involved, these methods prevent you from delayed payments (especially NEFT). .
About NEFT
A system of payment that enables the transfer of funds on a one-to-one basis is known as NEFT. The purpose of a NEFT transfer is to electronically transfer funds from one bank account to another bank account that takes part in this system of transfer. Through the system of NEFT, funds are not transferred in real time, but settlements are made in half-hour batches. Here are features of NEFT:
- The system is active on all days of the year, 24 hours a day.
- Transactions are cleared every half an hour
- There are no extra charges for beneficiaries, but extra charges (based on amount categories) have to be incurred by remitters.
- The minimum transfer value is Rs.1.00 and there’s no maximum limit.
- You can pay your credit card bill through NEFT.
About RTGS
Another payment system, called RTGS for short, is used to transfer bulk funds from one bank account to another. These transfers are real-time settlements, and are mainly used for gross payments. Features of this payment system are as follows:
- This facility is available all days of the year, 24 hours per day.
- Settlement is instant, done in real-time.
- There are no extra charges for beneficiaries, or for online transactions, but charges exist for remitters on amounts exceeding Rs. 2 Lakhs
- The minimum transfer value is Rs. 2 Lakhs
About IMPS
IMPS full form is Immediate Mobile Payment Service. Transactions are instantly settled, and there’s no minimum limit, so you can transfer funds of any smaller amount in an emergency. The features of IMPS follow:
- Facilities are available on all days of the year, 24 hours a day.
- Settlement is done in real-time.
- Charges may be levied as decided on by individual participating banks.
- The minimum transfer value is Rs.1.00 and the maximum is Rs.2 Lakhs
- This transaction can only be done online.
In Closing
Whichever way you choose to transact, you are sure of quick and secure payment methods that offer convenience at a single click, or a few at the most. Navigate to Finserv MARKETS and know more about these three much-used fund transfer methods.
