Transfer Money in India
Banking is one of the oldest public facilities in our society. For hundreds of years we are used to making monetary transactions using the currency. In recent years, banking has become increasingly popular as thousands of new account holders are connecting themselves with the various nationalized and private banks in India. To keep up with the growing customer base, banks have also been taking measures to ensure that customers get the safest and most efficient banking experience too.
According to statistics by IBEF (India Brand Equity Foundation)*, India currently has an astounding 96,068 banks, which include public and private sector banks, foreign banks, rural regional banks as well as urban and rural cooperative banks. Apart from the immense number of banks, India reportedly has over 221,700 ATMs active across the length and breadth of the country. The banking sector is set to increase the number of ATMs to over 407,000 by 2021.
These remarkable figures showcase the strong banking infrastructure of the country. With the improved banking structure, there has been a resultant rise in online banking in the country, especially after the demonetization move by the Central Government in November 2016.
The increasing focus on promoting online banking by the banks and government has shown incredible results. According to a report in the Financial Express, currently, there are over 45 million active online banking users in the country. This number of online banking users is expected to be as much as 150 million, by 2020 in India.
With an increase in smartphones and online shopping, larger numbers of customers are now choosing to make payments using online banking methods. Online banking offers incomparable efficiency and convenience to customers. Today, Indian banks provide various options for online banking to their customers.
The top five ways for online money transfers in India are:
Before jumping to select one of the five methods, it is important to know the factors that can help decide the best-suited money transferring method for you.
These are the factors that outline the aim and result of any online money transferring methods:
Now, let’s check the details and benefits of each money-transferring method which is used in India today:
The National Electronic Fund Transfer (NEFT) method is by far the most popular money transfer technique used in India today.
NEFT uses the DNS (Deferred Net Settlement) system to settle a transaction in batches at a specified time period during working hours. You will require an IFSC (Indian Financial System Code) of the recipient’s bank to complete the transaction successful. This is a unique 11-digit code that is assigned to every RBI-recognized banking institution. It identifies the individual bank as well as the bank branch with which the account is held with.
Follow these simple steps to initiate fund transfer using NEFT:
Some of the top benefits of using NEFT for fund transfer are:
The Real-Time Gross Settlement (RTGS) method of money transfer is the next most popular money transaction method used in India, especially for transferring large sums of money quickly with online banking.
As it facilitates transferring funds of INR 2,00,000 and over immediately in real-time, small and large business owners find it extremely convenient. You will need the IFSC code of the recipient account holder for successful RTGS money transfers. In addition, the sender’s and recipient’s bank accounts need to be RTGS-enabled for completing the monetary transaction successfully.
These are the simple steps that help to complete an RTGS money transfer successfully:
These are the top benefits of using RTGS for fund transfer:
The Immediate Payment Service (IMPS) is another excellent and top choice for users as a reliable and secure method of online money transactions.
In contrast to other online banking methods that are dependent on the bank’s working hours to get completed, IMPS is a fund transfer service that works 24 hours a day, 7 days a week, irrespective of Sundays, public holidays and bank holidays. Although it is designed to handle low-value fund transfers, it does the online transaction instantly. Today, most banks provide IMPS as an SMS-based service, making it excellent and efficient for mobile phone users to transfer money immediately through online banking.
These are the simple steps to follow and successfully complete an IMPS transaction:
These are the express benefits of using IMPS for online fund transfers:
Unified Payment Interface (UPI) is any real-time online payment app that allows fund transfer from your bank account to the recipient’s bank account using Virtual Payment Address) VPA on smartphones.
These are excellent apps for easy and immediate fund transfers that are growing in popularity immensely. Using UPI does not require you to divulge your bank account details, instead only the recipient’s mobile number and name are sufficient to send them funds over the internet.
UPI apps work 24/7 and can easily allow fund transfers of up to INR 1,00,000 at a time.
Cheques have been the conventional mode of payment, besides cash, for a long time now.
You simply need to draw a cheque with the recipient’s name, account number and bank details and sign at the mentioned place. Once you draw the cheque, you can choose to make a cheque deposit directly into the recipient’s account.
Using cheque to transfer funds is secure but may take around 2-3 working days for the transferred amount to get reflected in the recipient’s bank account.
It is highly recommended to check the specific terms and conditions of the above-stated fund transferring methods with your bank before choosing the best-suited money transaction method.