How to Transfer Money Online with Ease: Your Ultimate Guide

Life has gotten a whole lot easier with the digital age, and one big change is how we deal with money. Banking is totally different now, and a major upgrade is how we move money between accounts. No more waiting in line at the bank – nowadays, a couple of clicks online can do the trick. Let’s check out the basics of online money transfers, see how it works, and look at the different ways we can do it.

Understanding Online Money Transfer

Sending money online is like merging the old-fashioned way of wiring funds with the modern magic of Electronic Funds Transfer (EFT). Basically, it means shifting money between bank accounts without the hassle of going to a bank or money office in person. Whether your boss puts your salary right into your account or you buy things at a store with your debit card, these are examples of how we do money transfers nowadays.

How to Transfer Money Online

1. IMPS – Immediate Payment Service

Immediate Payment Service (IMPS) does what its name suggests – it makes fund transfers happen instantly. With a daily cap of Rs. 1 Lakh, IMPS transactions do come with some extra service tax charges, typically falling between Rs. 5 and Rs. 15, depending on the specific policies of the bank. IMPS provides a strong, real-time option for transferring funds between different banks, and the best part is, it’s available 24*7. This not only ensures a quick transfer but also guarantees safety and cost-effectiveness.

Process:

  • Log in to your mobile/internet banking account.
  • Click on the ‘Fund Transfer’ option on the main page.
  • Select ‘IMPS’ as your transfer method.
  • Share the recipient’s Mobile Money Identifier (MMID) along with your Mobile Personal Identification Number (MPIN).
  • Enter the transfer amount and click ‘Confirm.’
  • Authenticate the transaction by entering the OTP sent to your registered mobile number.
  • Complete the transaction.

2. UPI – Unified Payment Interface

Unified Payment Interface (UPI) stands out as a popular mobile payment method, facilitating instant and free fund transfers between bank accounts. Each user is assigned a UPI ID, a unique identifier for their bank account. Transfers are secured with a 4 or 6-digit UPI PIN chosen by the account holder. Here’s a breakdown of how you can transfer money using UPI.

Process:

  • Select a contact or enter a mobile number, specify the amount, and enter your PIN for instant transfer.
  • Scan a UPI QR code using a mobile payment application for quick transactions.
  • Enter the UPI ID, amount, and PIN for transfers.
  • Traditional transfers using account numbers and IFSC are also supported on UPI.

3. NEFT – National Electronic Funds Transfer

One popular way of transferring money is through NEFT (National Electronic Funds Transfer), which works by settling transactions at a later time. This method makes it easy to move funds between different bank accounts. Although there’s no fixed limit set by the RBI (Reserve Bank of India), individual banks might have their own restrictions. For example, when it comes to cash-based transfers within India and to Nepal, the maximum amount per transaction is capped at Rs. 50,000.

Process:

  • Log in to your bank’s net banking portal.
  • Add a beneficiary by providing their details (name, account number, and IFS Code).
  • Transfer funds to the beneficiary from the ‘Transfer Funds’ section.
  • Authenticate the transfer with the OTP sent to your registered mobile number.
  • The amount will be credited to the beneficiary in the next scheduled batch.

4. RTGS – Real-Time Gross Settlement

Real Time Gross Settlement (RTGS) is a real-time fund transfer system designed for high-value transactions. It operates on a gross settlement basis, processing transactions on a one-to-one basis. RTGS transactions can be performed at any time, any day of the year.

Process:

  • Log in to your internet banking account.
  • Click on ‘Fund transfer’ and select ‘RTGS.’
  • Add a beneficiary if not already added, providing necessary details.
  • Authenticate the addition with the OTP sent to your registered mobile number.
  • Select the beneficiary from the list and confirm the transfer.

Maximize your savings and simplify your online transfers with Freo! Open a savings account now to unlock competitive interest rates. Click here to get started on your path to financial growth.

Open your Freo FD today!

Summing It Up:

Service NEFT (National Electronic Funds Transfer) RTGS (Real Time Gross Settlement) IMPS (Immediate Payment Service) UPI (Unified Payments Interface)
Time Taken Funds are transferred in batches, usually on the same day Real-time transfer, usually within 30 minutes Immediate Immediate
Minimum Amount No cap on minimum amount Rs 2 Lakh No cap on minimum amount No cap on minimum amount
Maximum Amount No cap on maximum amount Rs 10 Lakh Rs 2 Lakh per day Rs 1 Lakh per day
Charges For less than Rs 10,000: Rs 2.50, From Rs 10,000 to 1 Lakh: Rs 5, From Rs 1 Lakh to 5 Lakh: Rs 15, For above Rs 2 Lakh: Rs 25 From 2 to 5 Lakh: Up to Rs 30, For above Rs 5 Lakh: Up to Rs 55 For up to Rs 1 Lakh: Rs 5, For Rs 1-2 Lakh: Rs 15 – Free Free
Beneficiary Registration Required Required Required (Not Required if using MMID) Not Required

 

Closing Thoughts

So there you have it, the detailed breakdown of how to send money online using various methods. From the quick and immediate IMPS to the steady and reliable NEFT, and the high-flying RTGS for significant transactions – each method has its own charm. The digital revolution has truly made handling money more accessible and user-friendly. Understanding these methods empowers you to choose what suits your needs best, making your financial transactions a breeze in the digital world.