The digital revolution and growth have substantially made life simpler for people worldwide. Jobs that used to require sizeable manpower and time can now be done merely by pushing a button. Along with everything, the banking industry has also revolutionized itself with the advent of technology.
One of the major problems that digitization has solved is the transfer of funds from one bank account to another. The traditional ways of transferring funds were time-consuming and often required you to visit the bank branch.
However, with the advent of money transfer online, I.e., immediate payment systems, unified payment interface, etc., the whole process has become a whole lot easier and hassle-free.
Let’s first learn what online money transfer is and then move forward to learning the types of money transfer.
Online Money Transfer
Money transfer online diminishes the old concept of wiring money and converges with the advanced technology of EFT (electronic funds transfer). Today, the majority of us are using EFT all the time. Online money transfer can be simply defined as a completely electronic way of transferring money from one bank account to another.
Direct deposit payroll transfers money from your employer’s account to yours. Similarly, swiping your debit card to make a payment at a store will move money from your account to that of the store’s bank account. Both of these fund transactions are examples of money transfers online.
Moreover, money transfer online is the modern-day equivalent of wiring money, which means you can send money to someone immediately with just a click. Therefore, there’s no need for you to go to a money-wiring office or even a bank.
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Ways to Transfer Money Online
1. Immediate Payment Service
As the name suggests, immediate payment service or IMPS lets individuals transfer funds immediately to another bank account. IMPS is a new concept in India, and most banks allow IMPS through their mobile banking platform and internet banking. IMPS transactions allow the users to make a maximum transaction of Rs. 1 lakh per day. Moreover, IMPS is a real-time fund transfer platform that offers a 24*7 fund transfer facility, which is economical and safe.
Advantages
- A fast and reliable method of transferring money.
- Works on both mobile platforms and internet banking.
- Can be accessed even on public and bank holidays.
- Once the IMPS transaction is completed, both the payer and the payee are immediately notified about the same.
2. Unified Payment Interface- UPI
Unified Payment Interface, popularly known as UPI, is a mobile payment method that allows you to transfer funds from one bank account to another instantly. To transfer money with the help of UPI, a user requires to have a UPI ID. The UPI ID works as a unique identifier for a bank account to send and receive money from one account to another.
Advantages
- Hassle-free and simple online payments.
- Safe method of money transfer.
- Requires scanning QR codes to make payments.
3. National Electronic Fund Transfer
National Electronic Fund Transfer is a one-to-one payment facility where transactions take place only between the banks that offer NEFT-related services. However, transactions made through NEFT do not take place in real-time, which means that it takes a few days for NEFT transactions to complete.
Note: There are no limits on transactions in NEFT.
Advantages
- Both the payer and the payee of the funds get notified when the transaction is completed.
- Completely safe due to the involvement of RBI.
- NEFT can also be used to pay off credit card dues, loan installments, etc.
- Money transfer online has been one of the easiest methods of transaction. You will only require limited information about your beneficiary’s account to make transfers. Transfer money with the utmost ease and safety with India’s leading payment solution, i.e., Razorpay.
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