Whether you have to pay online school fees, buy groceries, or order supplies for your home-based business, transferring money online from your bank is one of the fastest, safest, and easiest modes to make payments anywhere anytime.

Fund transfer from your bank account can be primarily done via three modes – NEFT, RTGS, or IMPS. These modes are nation-wide centralized funds transfer or payment systems operated by the Reserve Bank of India (RBI).

Individuals can electronically transfer funds from any bank branch to any individual having an account with any other bank branch in the country participating in this facility.

Choosing the right mode for transferring money online depends on various factors such as the amount of money you want to be transacted, when and how soon does the payment need to be done, and the charges levied by banks for each transaction.

Real Time Gross Settlement (RTGS)

For transferring money online, RTGS services are available only on working days (from 7 am to 6 pm). However, each bank follows its own timings. These services are not available on weekends and bank holidays.

  • A minimum transaction amount of Rupees Two lakhs (Rs. 2,00,000) is prescribed for RTGS. So RTGS system is primarily suited for high value transfers.
  • The maximum transaction limit is determined by the bank in which you hold your account.
  • Fee: charges in RTGS are higher than NEFT and IMPS. The transaction charges have been capped by RBI.
  • Transaction time: Funds are transferred in real time and within a few minutes.
  • Execution: RTGS transactions are processed individually and so they get remitted instantly.
  • RTGS can be done online or by visiting a bank.
National Electronic Funds Transfer (NEFT)

Transferring money online can also be done via NEFT. NEFT is an electronic funds transfer system developed by the Institute for Development and Research in Banking Technology. These services are available 24×7.

  • There is no minimum transaction value for transfer of funds.
  • The Maximum transaction limit is determined by the bank in which you hold your account.
  • Fee: There are no fee charges for savings bank account customers.
  • Transaction time: It has fixed batch time slots to transfer money and takes around 2 hours for the recipient to receive the funds.
  • Confirmation is given to the remitter by SMS / e-mail on credit to beneficiary account.
  • Besides funds transfer, NEFT system can be used for a variety of transactions including payment of credit card dues to the card issuing banks, payment of loan EMI, inward foreign exchange remittances, etc.
  • It is available for one-way funds transfers from India to Nepal.
  • NEFT can be done online or by visiting a bank.
Immediate Payment Service (IMPS)

This system was introduced to aid small payments & transfers using phones through the Bank’s mobile banking app. It is a multichannel and multidimensional platform that makes the payments possible within a fraction of a second. Its main feature is that transfers can be done using mobile numbers and a MMID (Mobile Money Identifier) code.

  • These services are available 24×7.
  • There is no minimum transaction value for transfer of funds.
  • Maximum transaction limit is Rupees Two lakhs (Rs. 2,00,000) per transaction.
  • Fee: Charges in IMPS are lesser than RTGS.
  • Transaction time: Funds are transferred in real time and within a few minutes, but is usually instantaneous.
  • IMPS can be done only online.

While transferring money online, choose the payment mode that suits your need the best. In case of high value transactions that you need to transfer urgently, go for RTGS. For any amount when you are not in hurry use NEFT, and for small real time transfers, IMPS works wonders.