DIFFERENCE & NEW UPDATES IN NEFT, RTGS, IMPS AND UPI.

 

The objective of the RBI is to establish an electronic funds transfer system to facilitate an efficient, secure, economical, reliable, and expeditious system of funds transfer and clearing in the banking sector throughout India, and to relieve the stress on the existing paper-based funds transfer and clearing system.

NATIONAL ELECTRONIC FUNDS TRANSFER(NEFT)

What is NEFT ?

National Electronic Funds Transfer (NEFT)is a nation-wide payment system that allows the transfer of funds from one bank account to another.

In November 2005 Reserve Bank of India has introduced an electronic funds transfer system called "National Electronic Funds Transfer” System. 

Earlier money could be transferred in NEFT only on working days and there was a limit to send money, but after December 16, 2019, RBI has removed this limit. Now we can transfer Money through NEFT throughout the year on all days, i.e., on 24x7x365 basis. There is no minimum transaction limit of NEFT, but the maximum limit depends on the bank. If money is transferred through NEFT to another account it takes 1 to 2 hours i.e. in which the transactions received up to a particular time are processed in batches.

 

RBI has mandated banks not to charge any fee on NEFT transactions done by savings account holders from January 1, 2020 i.e.from will be free cost.

If you do NEFT through application i.e. NET BANKING /MOBLIE BANKING following details are required;

• Beneficiary's Name
• Beneficiary's Branch Name
• Beneficiary's Bank Name
• Beneficiary's Account Type
• Beneficiary's Account No.
• Beneficiary's Branch IFSC

REAL-TIME GROSS SETTLEMENT (RTGS)

What is RTGS ?

Real time gross settlement (RTGS) system are specialist funds transfer system where the transfer of money takes place from one bank to any other bank on a ‘Real Time’ means the processing of instructions at the time they are received; ‘Gross Settlement' means that the settlement of funds transfer instructions occurs individually.

RTGS is real time gross settlement of transactions. It happens on a real time basis. This means that your transaction will not be kept in the waiting period like it is kept in NEFT. In RTGS, the transactions are processed continuously on a transaction-by-transaction basis throughout the day.RTGS is a system that is generally used for large-value interbank funds transfer. The minimum amount for RTGS transactions is RS 2 lakhs. For online transactions, some banks do have a maximum limit of approximately RS 25 Lakhs, If the RTGS transaction is done through the bank branch, there is no upper in RTGS limits in India.

In RTGS, money transfers in about 30 minutes, the transaction timing of RTGS is between 7 AM to 6 PM,The timing of Interbank transactions between 7AM to 7.45PM. In RTGS, your transaction can be done on working days only. If you do it after this time or before this time, then it will be transferred on the next day itself, the charger of the transaction RBI has been made free of cost from July 1, 2019, with a view to rationalize the service charge, RBI has kept in the condition as if there is a transaction inward i.e. if your account is getting RTGS money from another account then it will be free of cost. But the transaction is outward, that is, send money from your account to another account through RTGS, then bank charges are applicable. In which if the transaction is between ,200,000 /-to 5,00,000/-,as service charge 24.50,/-(exclusive of tax, if any) can not charge more than. If the transaction is above 5 lakhs, as service charge 49.50/-(exclusive of tax, if any) cannot be charged more. 

Banks may decide to charge a lower rate but cannot charge more than the rates prescribed by RBI.

If you do RTGS through application i.e. NET BANKING /MOBILE BANKING following details are required;

• Select Mode of Payment(RTGS)
• Beneficiary's Name
• Beneficiary's Branch Name
• Beneficiary's Account Type
• Beneficiary's Account No.
• Beneficiary's Branch IFSC

IMMEDIATE PAYMENT SERVICES (IMPS)  

For Transferring funds in real time and 24X7X365 interbank was a major challenge faced in banking industry. Only NEFT & RTGS were available to users for fund transfer during banking hours.

   

What is IMPS?

Immediate payment services(IMPS) is an instant payment Inter-bank electronic funds transfer system in India.

Immediate Payment Service (IMPS) public launch happened on 22nd November 2010 by the National Payments Corporation of India and this service is now available to the Indian public.

The advantage of IMPS is that you can rely on this service to transfer funds even outside bank working hours, on weekends, and on public holidays i.e.24X7X365 days. It's efficient and reliable with regards to the timing of use. With IMPS, any user can transfer funds as low as RS 1. IMPS's maximum limit per transaction is 2 lakh. Through IMPS, users can do 10,000 free transactions that can be done without any service charge, if you transfer between 10,000/- to 1,00,000 /-then you will have to pay RS 5/- such as service charge. If you transfer between 1,00,000/- to 2,00,000/- then you will have to pay RS 15/- as a service charge. ( Including GST).

If you do IMPS through application i.e. NET BANKING /MOBILE BANKING following details are required;

• Select Mode of Payment(IMPS)
• Beneficiary's Name
• Beneficiary's Branch Name
• Beneficiary's Account Type
• Beneficiary's Account No.
• Beneficiary's Branch IFSC

 If you do not have the Beneficiary's details as mentioned above. Then you can transfer money by MMID and Mobile Number of Beneficiary's/payee.

UNIFIED PAYMENTS INTERFACE(UPI)

NEFT, RTGS, and IMPS was a major challenge faced, in all these you have to add Beneficiary's Name, Beneficiary's Account Type, Beneficiary's Account No, Beneficiary's Branch IFSC then it takes hours and once it is activated, then you transfer the payment and Here you are made to wait for Particular time. So apart from these, UPI is a Better and easy method. In this, you get a UPI ID or Moblie No. through which you can transfer funds.

 

Whats is UPI ?

A Unified payment interface is an Immediate Real-time payment system that helps in instantly transferring the funds between the two bank accounts through a mobile platform.

 

UPI was developed by the NPCI i.e. National Payments Corporation of India and is controlled by RBI and IBA (India Bank Association). which looks after the transactions through Inter Banking of India. Presently, the UPI is a free-of-cost fund transfer mode. The NPCI has, however indicated that charges for UPI transactions would fall in the range of RS.0.50. With UPI you can make any time payment, it works 24/7.

 

To use UPI, you can use applications that support UPI settings i.e. Bhim UPI, Paytm, Phonepe, google pay, or Bank provides its own UPI App for Android, Windows, and iOS mobile platform(s).

 

How to get it:

• Bank a/c
• Mobile number should be linked with bank a/c
• Smart Phone with internet facility
• Debit Card for re-setting MPIN.