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Navigating the world of an Online Basic Savings Account: All You Need to Know

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NEFT- Modes, limits, requirements, NEFT maximum limits and more. Also, learn about other secured ways to transfer money internationally.

Know Your Limits: NEFT, RTGS, IMPS & UPI Maximum Daily Limits

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"Know Your Limits: NEFT, RTGS, IMPS & UPI Maximum Daily Limits"

Pranav Karnad

Banking isn't everyone's cup of tea — read these to figure it out

<p>
    You’ve probably heard the words NEFT, RTGS, IMPS, UPI and so on. But before we work out what their transfer limits are, let’s picture a situation. Let’s say you’re out for dinner with friends. The bill arrives, and suddenly you realise you’ve forgotten to bring your wallet (wink wink). Sounds familiar?
   </p><p>
    Life was easier when you could slide out of such situations, blaming your poor memory and getting away with it. But, with the rise of digital payment modes such as UPI, NEFT and IMPS, you can’t. With internet banking, money can now be transferred instantly using web-enabled devices like your smartphone, tablet or PC.
   </p><p>
    Jokes apart, the process of online money transfer is a modern marvel. And all of us learnt its advantages during the lockdowns.
   </p><h2>
    Different Modes of Money Transfer in India
   </h2><p>
    You can now send money in the blink of an eye and you must be using a few of them, but here’s a brief description nonetheless.
   </p><h3>
    1. NEFT or National Electronic Fund Transfer‍
   </h3><p>
    A money transfer system that runs transaction settlements in batches (every 30 mins). While predominantly used through online modes, the facility is also available offline via the bank branch and in the form of cash/cheque/DD.
   </p><h3>
    2. RTGS or Real-Time Gross Settlement‍
   </h3><p>
    Another mode of money transfer, albeit used specifically for high-value online transactions. Both NEFT and RTGS systems require your banking account and the beneficiary’s bank account to have the system enabled for the transaction to be successful.
   </p><h3>
    3. IMPS or Immediate Payment Service‍
   </h3><p>
    Possibly the most popular online transfer mode for users with small to medium value transactions. IMPS can also be done without a bank account using just the mobile number and bank allotted MMID (Mobile Money Identification Number), although with a lower transfer limit.
   </p><p>
    The National Payments Corporation of India (NPCI) manages IMPS transfers.
   </p><h3>
    4. UPI or Unified Payments Interface‍
   </h3><p>
    Under the purview of NPCI, this mode garnered massive popularity in a very short while of its existence. It is predominantly carried out via the mobile banking platform but doesn't require any bank account details. All you need is an Aadhaar number and a mobile number or a virtual payment address (VPA).
   </p><h2>
    ‍NEFT vs RTGS vs IMPS vs UPI
   </h2><p>
    Here is a table explaining the key differences between NEFT, RTGS, IMPS and UPI.
   </p>

<h2>Which is the Most Suited Method for You?</h2><p>Different modes can be used based on the amount to be transferred, type of account, associated charges, and overall convenience. Here’s a glimpse of instances where different money transfer and payment platforms can be used.</p><ul role="list"><li>Use UPI for small-ticket items, like groceries, utility bill payments, and other shopping. It’s available 24x7 and is free. Another benefit is that it’s contactless.</li><li>IMPS could be used to pay your monthly house rent. Since it requires the landlord's IFSC code and account number, it is safer and acts as transaction proof for HRA declaration per the income tax guidelines.</li><li>For larger transactions like down payments or helping out family members living abroad, either use NEFT or RTGS. IMPS and UPI cannot be used to carry out international money transfers yet.</li></ul><h2>Requirements for Different Payment Methods</h2><p>For NEFT and RTGS, the beneficiary bank account must be enabled, else the transfer will not go through.</p><p>Typically, you first need to add the beneficiary using the bank account number and IFSC code. While using these modes to transfer money abroad, it is mandatory to have your PAN linked to your account.</p><p>For IMPS, too, the same principles apply while making an account-to-account transfer. IMPS also gives you the option of sending/receiving money using a mobile number and MMID (Mobile Money Identification Number). This ID is allotted by the bank directly.</p><p>In the case of UPI transfers, all that is required is the recipient’s UPI (phone number), or the VPA (Virtual Payment Address) that needs to be entered on the sender’s UPI app.</p><h2>In Conclusion</h2><p>Online fund transfers provide a dependable, swift, and hassle-free method for moving money. With these services, you can seamlessly transfer funds without the need to endure lengthy queues for cash withdrawals or visit the bank in person. Moreover, they offer versatility and options. By considering variables such as the transfer amount, transaction speed, cost, and timing, you can pick the service that aligns best with your specific transaction requirements.</p><h2>Hassle-Free Online Banking Via Fi</h2><p>You can go online &amp; open a Federal Bank savings account in 3 minutes — via the Fi Money app. No paperwork &amp; no hidden fees! Fi, alongside its licensed partner Federal Bank, showcases the future of secure &amp; simple money management. Fi can help you save, pay, invest, track expenses, and borrow money, all in one place. If you upgrade to other account plans within Fi — you get access to premium features like US Stocks, Mutual Funds, etc. &amp; up to 4x rewards! In short, Fi's an online money management solution that helps you get smarter with your money.</p><h2>Frequently Asked Questions</h2><h3>1. What distinguishes NEFT, RTGS, and IMPS from each other?</h3><p>NEFT, RTGS, and IMPS are distinct online fund transfer methods, each with unique features based on various factors, including:</p><p>- Timing for money transfer</p><p>- Minimum and maximum transfer amounts</p><p>- Individual or corporate use</p><p>- Associated fees or charges</p><h3>2. Is NEFT safer than IMPS?</h3><p>Both NEFT and IMPS offer comparable levels of security for interbank fund transfers. If your fund transfer isn't urgent and the amount is below ₹10,000, NEFT might be a preferable choice due to its lower service tax compared to IMPS.</p><h3>3. Is IMPS transfer free?</h3><p>IMPS fund transfers typically involve a transaction fee ranging from a minimum of ₹2.50 to a maximum of ₹25, which can vary among different banks.</p><h3>4. What is the daily limit for NEFT transfers?</h3><p>NEFT transactions don't have a fixed maximum limit, but individual banks may impose specific limits for their NEFT services. For example, HDFC Bank allows a daily NEFT transfer limit of ₹25 lakhs per customer ID when using online mode.</p><h3>5. Is NEFT available 24/7 now?</h3><p>Yes, NEFT is available for use around the clock, 365 days a year. Transactions conducted outside normal banking hours are automated and initiated using 'Straight Through Processing (STP)' by the banks.</p>