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?
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.
Jokes apart, the process of online money transfer is a modern marvel. And all of us learnt its advantages during the lockdowns.
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.
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.
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.
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.
The National Payments Corporation of India (NPCI) manages IMPS transfers.
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).
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 payments platforms can be sued.
For NEFT and RTGS, the beneficiary bank account must be enabled, else the transfer will not go through.
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.
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.
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.
Fi is a money management app that utilises data and design for an intuitive banking experience. All you have to do is feed in the recipient’s UPI ID or Fi Account linked number to make a transfer in less than a few seconds. Additionally, you can do a quick UPI QR code scan and make a payment. Transferring money has never been this convenient.
