All about Remittances!


The process of transferring money has become very simple with the introduction of new services. Different payment and settlement systems in India have made it easier and faster to transfer money from one bank account to another. Many banks, private companies, and government agencies, among others, are using various payment and settlement methods NEFT, RTGS, and IMPS being the most popular.

While NEFT and RTGS were introduced by RBI (Reserve Bank of India), IMPS was introduced by the National Payments Corporation of India (NPCI). National Electronic Funds Transfer ( NEFT)

NEFT is an electronic payment system developed by the Reserve Bank of India to facilitate the transfer of funds from one bank to another in India. It is a safe, cost-effective, dependable, and efficient method of transferring funds between banks.

When transferring funds, the remitter must provide the following information: the beneficiary's name and account number, the name of the bank/branch, and the IFSC code of the beneficiary branch.

These transfers take place in batches every 30 minutes, rather than in real-time. However, this does not guarantee that your money will be transferred within 30 minutes; it may take longer. The minimum transaction amount is Re 1, while the maximum amount varies by bank.

This settlement takes place on the RBI's books via IBTS or Interbank Transfer Scheme, making any such transaction irrevocable and final. The RBI then reports the money transfer to the remitting bank, which then reports to the remitter.


Features of NEFT


- Saves efforts and Time

- It is done Electronically

- Payments are Secure - Minimum transfer amount is Re 1

-Transfer of NEFT funds is free of cost when done online

- NEFT can be done either using an online mode such as internet banking or by visiting the bank branch


Real-Time Gross Settlement (RTGS)

The acronym 'RTGS' stands for Real Time Gross Settlement, which can be explained as a system where there is the continuous and real-time settlement of fund transfers, individually on a transaction-by-transaction basis (without netting). 'Real Time' means the processing of instructions at the time they are received; 'Gross Settlement' means that the settlement of funds transfer instructions occurs individual.


Features of RTGS

-RTGS service can be availed 24*7, around the year, also on Sundays as well as bank holidays.

- Transfer By RTGS is free of cost when done online

- Saves efforts and Time

-It is done Electronically

-Payments are Secure

-Minimum transfer amount is Rs 2,00,000/-

IMPS

Immediate Mobile Payment Services (IMPS) is a real-time instant inter-bank fund transfer system. The National Payment Corporation of India manages IMPS. Unlike NEFT and RTGS, IMPS is available 24 hours a day, seven days a week, including bank holidays. The minimum transaction amount for IMPS fund transfers is one rupee. That is why, even for small-value transactions, retail customers across India prefer this fund transfer method over others.


Features of IMPS

-The minimum transfer amount is Rs 1.

-The maximum is Rs 5,00,000/- per day

-Money can be transferred via IMPS only through online channels such as internet banking.

-The transfer of funds is confirmed instantly.

-This service is only available if the receiving bank is an NPCI member. --Settlements occur 24/7 at that time, just like UPI transactions.

-Amount is transferred immediately



Comparison Type

NEFT

RTGS

IMPS

Mode of process

​Online as well as offline

Online as well as offline

Online only

Minimum amount for transferring money

Re 1

Rs 2 lakhs

Re. 1

Maximum amount for transferring money

No limit

No limit

Rs 5 lakhs

Settlement type

Half yearly batches

Real time

Real time

Time taken

3o minutes to 72 hours

30 mins

Instantly

Transaction charges

No charge for inward transaction or online process

No charge for online process or inward transaction

For outward transactions:-

Rs 2 lakhs to Rs 5 lakhs – Upto Rs 25 plus GST

Rs 5 lakh and above – Upto Rs 50 plus GST

Charges depend on bank to bank

Timings

Available all round the year 24/7

Available all round the year 24/7

Available all round the year 24/7

Process Speed

Slow

Faster

Fastest

Reliable

Yes

Yes

Yes





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