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Instant Money Transfer Facility Decoded

Suppose you have a resident, NRI or NRO account from ICICI bank and want to transfer money to your family member or third party, which has account in HDFC bank, then you can either use NEFT (National Electronic Funds Transfer) or RTGS (Real Time Gross Settlement) depending upon, how much money you want to transfer. A third way, rather new way of money transfer between banks is IMPS (Interbank Mobile Payment Service or Immediate Payment Service) was introduced in 2010 by the National Payments Corporation of India to empower customers to transfer money instantly. If you go to your net banking account, you can see all three ways of transferring money between banks. Well, If you just want to transfer money to another account but in same bank e.g. to your wife’s account in ICICI bank, you don’t need to use NEFT, RTGS or IMPS, it’s done instantly by the bank itself. 

money transfer

RTGS

Here the words “Real Time” refers to the process of instructions that are executed at the time they are received, rather than at some later time. On the other hand “Gross Settlement” means the settlement of funds transfer instructions occurs individually (on an instruction by instruction basis).

NEFT

The NEFT is a nation wide payment system facilitating one-to-one funds transfer. Under this system, individuals, firms and corporates can electronically transfer funds from any bank branch to any individual, firm or corporate having an acount with any other bank branch in the country participating in the system.

IMPS

IMPS (Immediate Payment Service) is next generation instant money transfer service from your mobile, effectively any time, any where. It has some key difference between RTGS and NEFT. This service is designed to make use of your mobile phone for transferring money between banks but you can also it via netbanking.

GRPT

GRPT (Group Payment) This facility is used by branches for transfer of funds between customers maintaining accounts with SBI and its Associate Banks. The customer’s account gets credited instantaneously, as in Core Power Transactions.

Let’s elaborate further;

RTGS

* RTGS stands for real time gross settlement, which means that it enables money to move from one bank to another on a real time and gross basis.

* Real time means the beneficiary bank receives the instructions for fund transfer immediately and gross means that it is not bunched with any other transaction and settlements of funds transfer instructions happen individually.

* The service window for RTGS at banks is available from 9am to 4.30pm on week days and from 9am to 1.30pm on Saturdays for settlement at the RBI end. Keep in mind that the timings that each bank follows may vary.

* RTGS is mostly meant for large transactions. The minimum amount that can be remitted through it is Rs 2 lakh. RTGS does not have an upper ceiling for transactions.

* For RTGS, inward transactions (when you receive funds through RTGS) are free. For outward transactions (when you send funds via RTGS), if the amount is between Rs 2 lakh and Rs 5 lakh, the charges will be up to Rs 30 per transaction. If the amount transferred is above Rs 5 lakh, the charges can’t exceed Rs 55 per transaction.

NEFT

* Neft stands for National Electronic Funds Transfer and is a payment system which facilitates one-to-one funds transfer.

* Like RTGS, Neft also transfers funds from one bank, but unlike RTGS the settlement takes place in batches (that may include transfers from various individuals) rather than individually.

* Neft operates in hourly batches. Currently, it has 11 settlements from 9am to 7pm on weekdays and five settlements from 9am to 1pm on Saturdays.

* It does not have a minimum or maximum limit of amount you can transfer. But the maximum amount per transaction is limited to Rs 50,000 for cash-based remittance and remittance to Nepal.

* For Neft, inward transactions (when you receive funds via Neft) are free, as no charges are to be levied from the person to whom fund are being transferred to. When you use Neft to make an outward transaction (when you send funds via Neft) at a bank branch for amounts up to Rs 1 lakh, the charge is up to Rs 5 plus service tax. For transactions above Rs 1 lakh and up to Rs 2 lakh, the charge is up to Rs 15 plus service tax. for transactions above Rs 2 lakh, the charges can’t exceed Rs 25 plus service tax.

If the transaction fails, the beneficiary’s bank must return the amount to your bank within two hours and the transaction must be reversed. Also, the bank must transfer the amount to your account within 30 minutes of receiving the same. The process can work quickly for RTGS . But, in case of NEFT the entire process could take an additional three-four hours.

IMPS

* IMPS is next generation instant money transfer service from your mobile, effectively any time, any where.

* This service is designed to make use of your mobile phone for transferring money between banks but you can also it via netbanking.

* You will need a 7 digit MMID (Mobile Money Identifier) number to transfer funds via IMPS (you need to check whether bank is participating on IMPS service or not).

main difference between IMPS and NEFT, RTGS is that is available 24×7, including Sundays and even on bank holidays, while both NEFT and RTGS available only limited period and also not available during bank holidays.

* Second difference is that IMPS is Immediate Payment service, The beneficiary account is credited immediately when a Fund Transfer request is made through your mobile phone or net banking, while NEFT is hourly settlement service.

* Third difference between IMPS and RTGS is that transaction limit is Rs 1 in IMPS while its 2 lacs in RTGS, which means like NEFT, you can transfer any amount of money using IMPS.

 Initially IMPS service was free, but now almost all banks are charging money.

GRPT

* The acronym “GRPT” stands for GROUP PAYMENT. GRPT is electronic funds transfer between all branches of State Bank Group, which are under CBS. This facility is used by branches for transfer of funds between customers maintaining accounts with SBI and its Associate Banks. The customer’s account gets credited instantaneously, as in Core Power Transactions.

* GRPT is an easy, quick, attractive remittance alternative for Demand Draft, Banker Cheques, TT’s etc. GRPT remittance is credited instantly on the same day or latest on the next working day (if sent after Closing hour).

* All Associates Bank are in CBS and are GRPT enable.

* There is no limit on amount for GRPT transactions.

* As this fund transfer is in between State Bank Group branches, all branches of State Bank Group are GRPT enabled, except a few SBI branches, which are not yet migrated to CBS.

References:
Business India
Live Mint
Savings Funda
State Bank of Hyderabad
and other articles

We tried to unfold the Instant Money Transfer Facility. If you think we are still undone please tell us under comment section below. To Read previous articles Go to TREASURE OF D2G > ARTICLES. 

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