Banking on the move is the mantra of today’s busy world, where instant money transactions have begun to dominate the financial discourse between service providers and consumers.
Banking on the move is the mantra of today’s busy world, where instant money transactions have begun to dominate the financial discourse between service providers and consumers. One can make use of various online payment channels to transfer funds and to pay bills. However, choosing the right channel can make all the difference between a successful transaction and a frustrating experience.
Here is a look at five money transfer options you can make use of to suit your different banking needs.
NEFT: The National Electronic Funds Transfer system, commonly known as NEFT, is by far the most popular online funds transfer system. You can use NEFT to transfer funds to any other individual or company in India, as majority of bank branches today are NEFT-approved. You can use NEFT to transfer funds as an individual, company, or as a corporate identity to any other by entering their name, bank account number and IFSC code. NEFT transfers funds in hourly batches of twelve settlements between 8 AM to 7 PM on weekdays and six settlements on Saturday. The system has a maximum limit of Rs 10 lakh. It is an ideal way for transferring funds between individuals like your family and friends and to make online payments to a specific receiver.
RTGS: Real Time Gross Settlement, is an online payment system offering instant or real time transfer. Unlike NEFT, there are no hourly batches, so your funds are transferred in real time. RTGS is typically used in business transactions, for immediate clearing of high-value funds. To use RTGS, you will need to transfer more than the minimum stipulated amount of Rs 2 lakh.
IMPS: If you are in a hurry and cannot wait for the hourly NEFT clearance, you can use the IMPS or Interbank Mobile Payment Service. IMPS funds transfers are instant and you can transfer funds even on Sundays and public holidays.
Before using IMPS, you will have to register your mobile phone with your bank branch. The bank branch will then issue you a 7 digit MMID code. You will need to send this code to your receiver to receive funds.
Alternatively, as a sender, you will need to add your recipient’s bank account number and MMID code to transfer instant money to his or her bank account using IMPS. The maximum transaction limit is Rs 2 lakh and transaction is possible only between participating banks as listed on the bank’s websites.
PTC: Pay to Contact, is an easy transfer service that you can use even without internet or data pack. PTC is useful for payment for all kinds of utility bills. You can even recharge your phone or DTH using the service.
You will need to have your mobile phone registered with the bank branch for PTC before using the service. All you need to do is call up your bank branch, select the PTC option and confirm your 4-digit mobile PIN. The system will then automate your payments and pay out your utility bills.
Wallets: If you make frequent payments online and worry about using net banking each time, you can opt for a digital wallet. With a digital wallet, you can make payments across online channels and also transfer money to family and friends to their wallets or bank accounts.
Both banks as well as private players like MobiKwik, PayU, Paytm, and others offer digital wallet services. Money transfers from wallet to wallet are usually free while fund transfers from wallet to bank accounts are charged depending on the wallet concerned. Technology has made banking easy with various fund transfer options. Make use of these instant services and optimise your financial transactions
The writer is founder &CEO, BankBazaar.com