The banking industry has evolved as a result of technological advancements, and one of the key challenges that technology has addressed is the transfer of funds from one bank account to another. The quickest way to transmit money these days is through mobile banking using e-wallets, however, large quantities must be sent via mobile banking. When it comes to making a financial transaction via a mobile device, there are some limitations. There are various methods for transferring money online in India, depending on the quantity and settlement times. There is also an Online Transaction Limit for payment.
Requirements to Transfer Funds Online
You can transfer funds in a variety of ways, including RTGS, NEFT, and IMPS. To transfer funds online, you’ll need your savings or current account’s internet banking credentials. If you are doing NEFT/IMPS/RTGS online, you must first register or add beneficiary information after logging in. You can use any of the techniques to transfer monies once it’s been added. But which method is preferable for transferring funds? It depends on the amount you want to send and when you want to send it. Let’s take a closer look to see which method is the best for transferring payments. and what is Online Transaction Limit.
Comparison of NEFT, RTGS, IMPS, UPI
|Full-Form||National Electronic Fund Transfer||Real-Time Gross Settlement||Immediate Mobile Payment Service||Unified Payment Interface|
|Settlement Type||Half Hourly Batches||Immediate Settlement||Immediate Settlement||Immediate Settlement|
|Minimum Transfer||Rs.1||Rs.2 lakh||Rs.1||Rs.1|
|Maximum Transfer||No Limit||No limit||Rs.2 lakh||Rs. 1 lakh|
|Payment options||Online and Offline||Online and Offline||Online||Online|
|Timings||In Batches- 24/7||Weekdays: 9:00 AM – 4:30 PM||24/7, 365 days||24/7, 365 days|
|Charges||No Charges||Charges differ with bank and amount||No charges||NO charges|
National Electronic Fund Transfer (NEFT)
The National Electronic Fund Transfer System (NEFT) is a batch-based electronic fund transfer system. In a bank branch, you can use cash, a check, or a DD to use the NEFT service. It’s also possible to use your bank’s net banking service. The maximum amount you can send in cash via NEFT is Rs 50,000.
From the year January 1, 2020, banks are not allowed to impose fees on their savings bank account holders for NEFT funds transactions made online. NEFT services are now available 24 *7 throughout the year. If you wish to use a bank to handle NEFT, you’ll have to pay costs based on the slabs.
Real-Time Gross Settlement (RTGS)
It’s a means of settling funds on an order-by-order basis in real-time. To put it another way, rather than processing requests in batches as NEFT does, the request to move or settle funds is processed directly.
The RTGS framework is designed to handle large volumes of transactions. As a result, the daily minimum amount that can be sent via RTGS is Rs 2 lakh. The maximum daily sum is Rs 10 lakh. Banks will use the RTGS service window for consumer transactions from 8 a.m. to 6 p.m. on business days. Banks levy service fees that are proportional to the transaction’s value. The fees vary depending on the bank and the transaction’s date.
Charges by SBI on RTGS
SBI charges Rs. 25 for a transaction between Rs 2 lakh and Rs 5 lakh made between 9 a.m. and 12 p.m. The cost over Rs. 5 lakh is Rs. 51.
SBI charges Rs. 26 for transactions between Rs 2 lakh and Rs 5 lakh between 12 p.m. and 3:30 p.m., and Rs. 52 for transactions over Rs 5 lakh.
SBI charges Rs. 31 for a transaction between Rs 2 lakh and Rs 5 lakh made between 3:30 PM and 4:30 PM. The cost over Rs. 5 lakh is Rs. 56.
Each bank is free to set its own rates for RTGS transactions; the following are the charges (excluding GST):
|Bank||RTGS Charges (Mobile)||RTGS Charges (Bank Branch)||RTGS Online Transaction Limit|
|SBI||Nil||₹ 25 to ₹ 56||10 Lakhs|
|ICICI Bank||10,000||Above Rs 2 lakh and up to Rs 5 lakh-Rs 20 + Applicable GST & Above Rs 5 lakh and up to Rs 10 lakh-Rs 45 + Applicable GST||10 Lakhs|
|HDFC Bank||Nil||₹ 15 + Applicable GST||25 Lakhs|
|Bank of Baroda||–||₹ 2 lakh and ₹ 5 lakh-₹ 25 (excluding GST) per transaction from 8:00 am to 11:00 am, ₹ 27 per transaction from 11:00 am to 1:00 pm and ₹ 30 per transaction after 1:00 pm.||–|
|Kotak Bank||–||Rs2 Lakhs to 5 Lakhs- Rs.20+ GST & Above Rs. 5 Lakhs- Rs.40+ GST||10 Lakhs|
|PNB||Nil||Rs. 2 lakh to 5 lakh-Rs.20.00 + GST & Above Rs. 5 lakh-Rs.40.00 + GST||5 Lakhs|
|Standard Chartered Bank||₹ 2 per transaction||Nil|
|Yes Bank||–||Above Rs. 2 Lakh- UptoRs. 5 Lakhs- Rs 25 & Above Rs. 5 Lakhs-Rs. 50||–|
Immediate Payment Service (IMPS)
IMPS is available 24 hours a day, seven days a week, including Sundays and holidays. It is an ideal financial network in an emergency since cash is transferred rapidly. The maximum amount that can be transferred with IMPS is Rs. 2 lakh. The minimum transaction value in IMPS is One Rupee. The maximum limit for transfers made using a mobile phone and MMID is only Rs 10,000. The National Payments Corporation of India is in charge of IMPS fund transfers (NPCI). Fees for transfers using IMPS are set by individual banks. Make sure to contact your financial institution for more information.
1) Charges from HDFC Bank: 1) Above Rs.1 to Rs.1 Lakh – Rs.5 + GST
2) Rs.15 + GST for amounts between Rs.1 lakh and Rs.2 lakh. The GST rate is 18%.
|Bank||IMPS Charges (Mobile)||IMPS Charges (Bank Branch)||IMPS Online Transaction Limit|
|SBI||Nil||Up to ₹1000- Nil, ₹1001 to ₹10,000 – ₹1 + GST, Rs.10,001 to ₹1,00,000 – ₹2 + GST, ₹1,00,001 to ₹2,00,000 – ₹3 + GST||2 Lakhs|
|ICICI Bank||10,000||–||10 Lakhs|
|HDFC Bank||Nil||Up to ₹1 Lakh – ₹5+ GST and ₹1 Lakhs – ₹2 Lakhs – ₹15+ GST||2 Lakhs|
|Axis Bank||Up to ₹1000 – ₹2.50, Above ₹1000 to ₹ 1 lakhs – ₹ 5 and above ₹ 1 lakh to ₹ 2 lakh – ₹ 15||–||2 Lakhs|
|Bank of Baroda||–||–||–|
|Yes Bank||₹ 5 per transaction||–||50,000|
|Kotak Bank||Nil||–||2 Lakhs|
|Standard Chartered Bank||–||–||2 Lakhs|
|RBL Bank||Nil||–||3 Lakhs|
Unified Payments Interface (UPI)
UPI is a mobile-based instant real-time payment system that allows you to transfer money between bank accounts in real-time. Without having to provide bank account data, UPI allows bank account users from different banks to send and receive money using only their Aadhaar unique identification number, mobile phone number, or virtual payment address.
The most popular UPI apps include
Frequently Asked Questions
What is the Best Way to Send Money? NEFT, RTGS, IMPS, and UPI:
UPI is the ideal payment system for instant fund transfers of less than Rs. 1 lakh. Pay transfers are completely free.
IMPS is a wonderful way to send money in sums more than Rs. 1 lakh but less than Rs. 2 lakh.
NEFT is also the quickest way to transfer money between bank branches. It’s perfect for recurring payments, loan repayments, and credit card payments. For transfers of Rs 2 lakh or more, RTGS is the best option.
What is the difference between an IMPS transaction and an NEFT transaction?
Money is transmitted to the beneficiary’s bank account quickly using IMPS (Immediate Payment Service). The beneficiary’s bank has half an hour to deposit the funds into his or her account. The NEFT (National Electronic Funds Transfer) system, on the other hand, is based on a net and batch approach. Payments are made in batches using the NEFT transfer system.
Is it possible to send money via IMPS for free?
Money transfers via IMPS are free up to a limit of ₹1,000. The charges are 2.50 + GST from 1,001 to 10,000. From ₹10,000 to ₹1,000,000, the costs are 5 + relevant GST. The IMPS rates are 15 + GST for amounts between 1 and 2 lakhs, and 25 + GST for amounts exceeding 2 lakhs.
Is it faster to use NEFT or RTGS?
The fastest payment method is determined by the urgency of your transaction. If you wish to conduct a transaction over 2 lakh, RTGS (Real-time gross settlement) is a more straightforward and reliable payment method. NEFT, on the other hand, is a more efficient means of payment for smaller transactions.
What is IMPS Online Transaction Limit?
The maximum amount that individuals can transfer through IMPS (Immediate Payment Service) in a single day is 2, 00,000, and there is no m