India is slowly becoming digital, in such a situation why the Banking Sector can stay behind, so I am Telling (What is the difference between NEFT, RTGS, and IMPS) in this article If you do not know what Digital India is, then you can take information from here. The use of Banking is also being done sitting at home nowadays, which is also called Mobile Banking.
You can also do these services like NEFT, RTGS, and IMPS with your mobile banking. Now those days are coming to an end when people had to stand in long lines in banks, even for a small job, it seemed as if this bank is not a ration shop where people have come to get food.
You can also do this, but you will waste your own time by doing this. When you can easily do your work from your Mobile Banking and Internet Banking or from any place where there is an internet connection.
Through the Internet Banking of your bank, you can take advantage of many banking services even while taking it to your bed. Through this, you can apply for a bill of credit cards, personal loan. Mobile can also recharge DTH. For this, you do not need to go out of your house.
Real-Time Gross Settlement (RTGS), National Electronic Funds Transfer (NEFT), and Immediate Payment Service (IMPS) have greatly simplified the payment process. The amount of praise we give for such services is less because RTGS, NEFT, and IMPS help us in making transactions easier, safely, and quickly.
There will be many of you who will use these services daily, but if you do not know the difference between all these services, then today you will give full information to people about this subject. So let’s know what is the difference between IMPS, RTGS, and NEFT.
Different ways to transfer money
In today’s time, people use one or more online money transfer modes in their lifetime. With the help of modern mobile technology-based banking, all people are now taking full advantage of this technology. With the help of online banking, now they are also doing all these things at home.
When it comes to money transfer and sending money from one account to another, then most banks offer a lot of options that are based on many reasons such as the need of the customer.
Talking about this time, there are many such banks providing money transferring methods like National Electronic Funds Transfer (NEFT), Real Time Gross Settlement (RTGS), Immediate Payment Service (IMPS), and many more. It depends on different factors like the value of the transaction, speed of transfer, availability of service, and other factors and what people use.
All these transferring methods give you different types of features and flexibility. Since all these services have their own advantages and disadvantages, they provide flexibility and convenience to the customers. Along with this, many banks have their own digital wallets which provide additional methods for online fund transfers.
The way to transfer money in India
Today, we have many such fund transfer methods, due to the use of the latest technology and the demand for online service, there are so few things left that are now left to be seen.
From banks and financial institutions to governing bodies, and private businesses, all use the latest technology, which has completely eliminated the gap between customers, partners, and vendors.
The way the number of online users is increasing in India. This cannot be denied that more and more people will use IMPS, NEFT and RTGS to conduct digital transactions. These services are online fund transfers for sending money online and not only fast, efficient, and convenient, compared to other manual methods, online transfers are much better and reliable.
If you want, you can use any service, whether it is NEFT, RTGS, or IMPS, all of which work according to the fund transfer methods and the individuals who transfer money from a person and businesses purpose. For anywhere and at any time in the whole world.
Now, most banks are also providing Net Banking facility to their customers. A computer or a smartphone which has an internet facility, a bank account holder can access any online banking services by accessing the fund transfer section which is given by the bank and there is no need to go to the bank.
Types of Fund Transfer
If seen, there are many services to transfer funds online such as digital wallets, UPI, etc. But out of these NEFT, RTGS, and IMPS are very common and they are used in most fund transfers.
If an individual is transferring funds, then that individual who is transferring funds is also called originator or remitter, or Sender. He should have the basic account details of the beneficiary (who needs to transfer funds). The details include account number, beneficiary’s name, account number, IFSC, and branch name, etc.
All this information is very important for any transfer method. It depends on the sender which ensures that all the Jankari given for fund transfer is correct or not.
Before knowing any fund transfer methods, before understanding the differences between them, it is important to first understand the basics of these payment systems. These are very important factors, they separate all the fund transfer methods from each other –
1. Amount – Your Amount is very important to decide which transfer methods should be used. The value of your fund determines which transferring method you use.
2. Timings (service availability) – There are some methods of fund transfer that allow the user 24/7, for online transfers, some allow only in specified time. Therefore, before transferring funds, it is very important that you know about the timings of these funds, whichever fund transfer method you are using. Because you cannot use IMPS and NEFT funds transfer methods during holidays.
3. Fund Settlement Speed - All fund transfer methods have different speeds. Fund settlement speed indicates how long it will take for any fund to complete the settlement or to reach the beneficiary’s account once it has been initiate, then in most cases, people choose transfer methods by looking at the transaction speed itself. But here one thing should be kept in mind that the more you charge, the more the charge seems to be.
What is the difference between NEFT, RTGS, and IMPS?
Eligibility of customer’s to-do online transfer methods and access to services that every bank gives. With this, the limit of transition, timings, settlement speed, and other factors depend on these online fund transfer methods.
This tells the customer that they should choose which transfer method. In today’s time, NEFT, RTGS, and IMPS are the most popular methods for transferring funds in India.
NEFT – According to this method, funds are routed through transfer batches (which are based on Deferred Net Settlement (DNS)) and have specific timing.
If the fund transfer is initiate after its timing, then it is settled on the next working day. As of now, the fund transfer requests of NEFT are made in 12 twelve batches from 8 a.m to 7 p.m on weekdays and on Saturdays in six batches from 8 a.m to 1 p.m.
NEFT facility is not available on Sundays and bank holidays. A very big advantage is that an individual of NEFT who wants to do small fund transfers does not have to worry much about the transaction fee and service charges. Because with a small fee they can easily transfer their payment.
Therefore NEFT is a very popular and highly used method for online fund transfers.
Under NEFT, transactions are easily initiated and settled. A bank account from a particular bank to another bank’s account anywhere in India and without any cost, only standard charges have to be paid.
With this, it is necessary that both banks should have NEFT transfer network (NEFT-enabled) enabled. With this, the fund can be transferred only after adding Beneficiary here too.
RTGS – Fund transfer is done from Rs.2 lakh to Rs.10 lakh through these transfer methods, but its biggest advantage is that RTGS is the fastest / real-time settlement mode. Funds reach the receiver’s account just as the sender’s account debits.
But for this, RTGS should be enabled in both banks. If seen, this facility is available in all banks in which the RTGS transfer network is enabled and which is run by RBI.
With this, it is advised that the individual should contact their bank directly and should tell their online banking section with it to know whether they are eligible for the facility of RTGS payment system or not. The transaction fee of RTGS is higher than that of NEFT and IMPS methods.
RTGS has a limit of minimum and maximum transaction, but it is a very good medium for transferring more funds to those who have to transfer their funds quickly. Efficiency, speed, and reliability are many other things that make RTGS a very popular online fund transfer medium.
IMPS – This is the most popular and fastest method for fund transfer at this time, other fund transfer methods are closed during bank holidays and off working hours, while IMPS works continuously 24/7 so that you can fund any day of the day. Can also take time.
Like NEFT, you can also transfer low-value funds in IMPS, and in this, you can immediately settle the funds which make it unique. From a glance, IMPS works like a combined version of NEFT and RTGS where the sender does not have to worry about the size and service availability of the fund, and with this, your funds get transferred very soon.